Steinhoff profit up 5%

Johannesburg - South African furniture maker and retailer Steinhoff International reported a 5 percent rise in first-half profit on Tuesday as the weaker rand currency helped offset slack consumer demand.

Steinhoff, which runs furniture stores such as Harveys and Conforama in Europe, said diluted headline earnings per share totalled 157.8 cents in the six months to end-December compared with 150 cents a year earlier.

Headline EPS, South Africa's benchmark gauge of profit, strips out certain one-time items.

Steinhoff is in the final stages of its restructuring drive aimed at creating three listed entities focused on manufacturing and selling furniture in emerging markets and in Europe.

It bought control of Kap International, a Cape Town-based furniture maker, and local furniture retailer JD Group.

The company, whose extensive operations in Europe make it one of the continent's biggest home furnishing businesses, has said it plans to a float European unit.

Sales increased 52 percent to 57.3 billion helped by contributions from newly acquired businesses, Kap International and JD Group while a weaker rand boosted its sales from Europe and Asia-Pacific.

Overseas sales account for nearly 60 percent of the company's total sales.

Shares in the Steinhoff, which are down about 4 percent so far this year, rose 2.15 percent to 26.55 rand as of 15:13 Sa time, outpacing a 1.22 percent gain in the JSE Top-40 index. - Reuters