South Ocean Holdings’ revenue increased by 12.5 percent to R618 million in the six months to June, but earnings fell by a third, the JSE-listed cable maker said yesterday.
The group comprises South Ocean Electric Wire Company, a manufacturer of electric cables, the Radiant Group, which distributes lamps and other electrical accessories, and the property letting division, Anchor Park Investments 48.
The cable manufacturer said that due to adverse economic conditions that had affected the construction and related sectors, and a fluctuating copper price, first-half headline earnings a share were down 32.1 percent to 10.8c.
Chief financial officer Koos Bekker said that the group’s earnings were affected by seasonality.
“Earnings for the first six months of the year are historically lower than the second six months. Management expects this trend to continue, with an improvement in performance during the second half of the current year, although it will be challenging,” he said.
South Ocean reported that interim net profit decreased 10.4 percent to R106.3m from R118.6m in the same period in 2010, as a result of “depressed economic climate and fluctuations in copper prices”.
Operating profit fell 27.6 percent to R30.2m.
The shares lost 0.64 percent to R1.55 yesterday.