Metair lifts interim profit but warns that Turkish exposure may tarnish full-year results
Vehicle parts maker Metair on Thursday reported a 16% rise in first-half headline earnings per share (HEPS) to R1.32, but cautioned that the recent drop in the value of the Turkish lira could take the shine off its full-year performance.
Metair has exposure to Turkey through its wholly owned subsidiary Mutlu Akü, which manufactures lead acid battery.
The value of the lira dropped 17% against the rand in the six months to end-June, from the year-earlier period, amid a mounting economic crisis in Turkey, the company said in a statement.
Apart from its home market of SA, Metair has operations in Romania and the UK, focusing on manufacturing, distributing and selling energy storage solutions and automotive components.
The automotive components business sells automotive parts, including brake pads, shock absorbers and lights. The energy-storage business sells batteries to the after-market and industrial clients.
Group revenue was up 10% to R4.5bn and net profit rose to R281.66m from R239.84m a year ago.
In its outlook statement, the company said its energy-storage vertical business had secured automotive supply contracts with two strategic after-market customers.
The contracts, which will give the group potential volumes of an additional 1.5-million units, were in line with the group’s long-term strategy to increase its export business, the company said.
The share price was up 3.35% to R14.52 in early trade on the JSE, valuing the company at R2.8bn.