Logistics group Imperial warned shareholders its headline earnings for its financial year to end-June would suffer from "a significant increase in foreign exchange losses and higher financing costs". Imperial said in a statement released before its annual investor day briefing by CEO Mark Lamberti on Tuesday that problems during the current financial year included low water levels on the Rhine river that harmed its German subsidiary Lehnkering, which was acquired in 2011 for €270m. In its home market, which contributed 59% of its interim R35.2bn revenue and 64% of its R1.9bn operating profit, the group said its vehicle importing subsidiary Motus suffered from the rand’s plunge following President Jacob Zuma’s Cabinet reshuffle. The see-sawing rand also caused it to suffer foreign exchange hedging losses. "Following the president’s politically motivated ill-advised and illogic decision to replace highly respected ministers in treasury, S&P downgraded SA’s long-term foreign currency s...
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