Delta EMD: Oversupply results in full-year loss

Battery chemicals manufacturer Delta EMD said yesterday that its competitive position had weakened as it plunged into a loss position, reporting a total comprehensive loss of R68.19 million for last year. In the year to December 27, Delta posted an attributable loss of R69.1m for the year, declining drastically from an attributable profit of R17.1m in 2012. The company reported a loss a share of R1.406, from earnings of 34.8c a share. Its headline earnings, however, increased slightly to R18.5m from R17.8m, and headline earnings a share climbed 1.5c to 37.7c. Delta said oversupply in the global electrolytic manganese dioxide (EMD) market and competitive pricing, which did not allow it to fully recover its input costs, had affected the results and had prompted its management to revise the group’s business plan for this year and reduce production. The company said it was still in discussions with its major significant customers to assess their short- and longer-term EMD requirements. The shares closed unchanged at R4.63 yesterday. – Londiwe Buthelezi