African Oxygen expects lower earning for the year to December
JOHANNESBURG - Gas and welding company African Oxygen said on Thursday it expected headline earnings per share for the financial year ending December 31 to be between 150.5 cents and 174.3 cents, down from 201 cents per share reported for the previous corresponding period.
The company said the expected decrease was a result of a 2018 fiscal year restructuring cost of R24 million, a provision made for the restructuring process of R58 million for the 2019 fiscal year, a R55 million impairment of assets as a result of the restructure and higher costs due to a once-off major plant break down.
Afrox, which expects to publish its results around March 4 next year, said it had reviewed its operating model to enable continued growth in earnings, against a backdrop of subdued economic growth.
It said it had particularly targeted a refined go-to-market approach, the continued centralisation of support functions, continued integration of production and distribution and optimized supply and distribution networks.
"In the execution of the company’s ongoing restructuring, the company will strengthen its operating model, reduce its fixed cost base further and allocate resources to areas of future volume growth," the company said.
"The primary objective of the restructure is to further improve the group’s organizational effectiveness, customer satisfaction and the need for integrated solutions across Sub-Saharan Africa.
- African News Agency (ANA)