Vastly improved operating profit leads to share price spike for Torre Industries
The company is beginning to see improved sentiment in the mining sector
Torre Industries’ share price gained as much as 14% to R1.14 on Tuesday morning, following the release of interim results for the six months to end-December.
Revenue rose 3% to R778m. Headline earning per share (HEPS) was up 32% to 4.83c from 3.65c. The company raised its dividend despite its after-tax profit declining to R25m from R29m following retrenchment costs.
Operating profit, which excluded impairments and restructuring costs, nearly tripled to R40m from R14m.
The group supplies parts and components to the automotive, mining, construction and industrial sectors and operates in 10 other African countries.
It ascribed its performance to the benefits of a restructuring exercise completed in the previous year.
Management was particularly pleased with the performance of Torre Analytical Services, stating that the economic and political environment in SA affected two other units: parts and components, and capital equipment.
The group said trading conditions remained challenging although the company was beginning to see improved sentiment in the mining sector, but the construction sector remained under pressure.
However, Torre was upbeat about "recent political and economic developments in SA".