Johannesburg - Grindrod, the listed integrated logistics service supplier, expects to report a headline loss of between R340 million and R400m for the six months to June compared with headline earnings of R327.9m in the prior period and has decided to to sell its locomotive assembly business.
The company said yesterday it had been necessary to raise an impairment of R675m in the rail business because of the continued depressed state of the market.
It said this impairment included R379m in goodwill and intangibles that arose on the black economic empowerment (BEE) transaction concluded in 2014.
Grindrod attributed the headline loss in the reporting period partly to “exceptionally” weak dry-bulk shipping rates during the first quarter. It said continued strong performances in the tanker and ship operating businesses mitigated the impact of the weak trading in the dry-bulk shipping business.
Shares in Grindrod dropped 4.41 percent yesterday to close at R12.36.
BUSINESS REPORT