Aveng sees lower profits

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ConstructionCrane

http://www.sxc.hu/

Johannesburg - South African construction firm Aveng said on Wednesday full-year earnings fell by as much as 10 percent, hit by weak demand from the strike-battered mining industry, and its shares dropped more than 4 percent.

Aveng, which builds roads, football stadiums and mining shafts, is the latest company in Africa's most developed economy to feel the impact of a debilitating five-month stoppage in the platinum industry that ended last week.

The firm is also likely to take a further hit after more than 220,000 engineering and metal workers launched a wage strike this week, a dispute that is expected to cost the economy more than $28 million a day.

Aveng, South Africa's second-largest builder by market value, said in a statement headline earnings per share for the year to end-June fell by as much as 10 percent.

Headline earnings, the main profit measure in South Africa, excludes certain one-time items.

Including one-time items, Aveng said its earnings fell to a full-year loss due to an accounting write-down.

Shares in the builder fell more than 4 percent, to 22.51 rand as of 16:44 SA time. - Reuters


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