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Metair drives earnings up

Published Aug 21, 2007

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Johannesburg - Auto parts maker and retailer Metair lifted its adjusted headline earnings per share (HEPS) by 24.3 percent to 72 cents for the interim period ended June, it reported.

Revenue rose to 23.9 percent to R1.4 billion, gross profit was up 17.8 percent to R320 million and attributable profit after tax increased by 25.1 percent to R110 million.

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Metair, which makes products that include shock absorbers, springs, lead batteries and auto cables, attributed the strong results to continuing rise in commodity prices especially lead.

The company incurred R50.3 million in capital expenditure over the period and a further R87 million has been committed.

"As a consequence of the significant investment in capital over the past few year, the group is well positioned to support its customers in their expansion plans," the company said.

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It added that it would continue to improve on its global competitiveness by resetting the cost base to be in line with competitive component makers in developing countries.

"Costs have been well controlled. The group will continue to focus on costs, quality, safety and delivery," the group said.

The group said prospects for the automotive industry remained positive with 592 150 vehicles projected to be produced this year.

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The company said that it remains positive about the final outcome of the government's review of the Motor Industry Development Programme.

"Metair remains positive in its expectation regarding both the extension of the programme and its refocus on locally produced components," the company said.

Government is expected to make an announcement on its review of the programme in December. - I-Net Bridge

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