Metair all charged up


Metair all charged up

Published Date: 2019-08-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Metair all charged up

The group says it has benefited from operational improvements but looming wage talks are clouding its outlook for the rest of the year.

Metair has reported a strong first-half after both its business units grew earnings in a challenging operating environment.

The automotive components and energy storage group says its battery businesses in SA and Turkey reported improved performances, with Mutlu Aku offsetting a 16% devaluation in the Turkish lira with an 85% increase in exports. In Romania, Rombat managed to sustain its performance in a challenging European trading environment.

Despite a challenging January start-up by SA customers, it said its automotive components unit also performed well and benefited from increased output volumes. This was partly as a contingency measure to offset any disruption caused by industry wage negotiations planned for the second half of the year.

Revenue rose 19% to R5.34 billion in the six months to end-June, with energy storage contributing 51% of group revenue and automotive components the remaining 49%. Operating profit increased by 21% to R499 million and headline earnings per share were up by the same margin at 160c. It's raised its dividend by a quarter to 100c per share.

The group said it was difficult to formulate an outlook for the second half of the year due to the looming wage talks in the sector. It said the labour environment was critical in providing a stable and sustained manufacturing base.

Its shares closed 1c higher at R22.47 yesterday.

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