COMPANY RESULTS
Operating profit down but Reunert expects a pick-up
Electrical engineering and technology conglomerate Reunert is pencilling in a better second-half performance in the financial year to end-September. Reunert reported an 8% drop in operating profit to R567m off a 10% hike in turnover to R4.84bn in the half year to end-March. Reunert CEO Alan Dickson said second-half business would be driven by a strong export order book at Applied Electronics as well as an improvement in volumes and product mix in the electrical engineering segment. He said the information communication technologies division’s performance would be reinforced by the contribution from the recent acquisition of SkyWire. Dickson cautioned, however, that the most notable business risks to Reunert in the second half were the rand’s strength and exchange rate volatility as well as the fiscal and organisational capacity of key state and municipal customers to place orders at a normal rate. The market was clearly disappointed with the interim numbers, marking Reunert’s shares...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.