AECI: Platinum strike hits operating profit

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AECI would not recover this year from the effects of the five-month strike in the platinum industry, chief executive Mark Dytor said yesterday. Platinum producers said the walkout cost them R24.2 billion in lost revenue. AECI, which makes mining explosives and general chemicals, said profit for the six months to June had risen 51 percent to R601 million, augmented by gains from sales of surplus property. Revenue had risen 11 percent to R8bn. Explosives sales were little changed at R3.55bn during the period, it said. Dytor said the mining strike had cost AECI about R250m in operating profit in the period after sales to platinum mines slumped. “We’re going to be lucky to get them back on to a normalised sort of route,” Dytor said. “I don’t think they are going to give us any catch-up in the next six months at all.” The shares declined 50c to close at R122.50 on the JSE yesterday. The stock has declined 2 percent this year. – Bloomberg


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