Strike damages Transpaco’s earnings

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Strike damages Transpaco’s earnings

Published Date: 2019-08-14 | Source: Stephen Gunnion | Author: Stephen Gunnion

Strike damages Transpaco’s earnings

The group says the unprecedented three-month plastic industry strike and a stagnant economy are to blame for a decline in its performance.

Transpaco says it will report a sharp slide in full-year earnings due to a strike in the plastic industry and the weak economy.

In a trading statement, the plastic and paper packaging manufacturer, recycler and distributor said earnings and headline earnings per share (HEPS) for the year to end-June would be between 40% and 45% lower than last year. This would result in HEPS of between 179.04c and 164.34c, down from last year's 297.4c.

It said the unprecedented prolonged three-month plastic industry strike impacted its business during the busiest October to December period. Coupled with a depressed consumer environment and a stagnant economy, this resulted in the decline in its performance.

The group's results are scheduled for release on 21 August. Its shares didn't trade yesterday, closing unchanged at R17.





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