Allied Electronics (Altron) has released a trading statement indicating that, while Powertech continues to struggle, the group's other operations are looking positive.
The statement follows on the from the company`s outlook statement contained in the 2009 interim results announcement, which contemplated continuing challenging market conditions.
It advises that Powertech has continued to experience difficult trading conditions. Volumes have remained depressed and pricing pressures have increased, negatively affecting operating margins. Capital projects continue to be delayed, while the ongoing strength of the rand has also had a detrimental effect on results.
However, Bytes has, following the implementation of various corrective actions, delivered an improved performance during the second half of the financial year, which is broadly in line with expectations -although pricing pressures remain in many of its markets.
Altech continues to deliver a good performance in what has been a tough trading environment, benefiting from – among others – sound strategic decisions and a high proportion of annuity income which has resulted in improved operating margins.
Against this backdrop, Altron has advised shareholders that earnings for the years ended 28 February are expected to be between 32% to 44% lower than the previous corresponding period. Headline earnings per share are expected to be between 25% to 35% lower as against the previous corresponding period. The company expects that its diluted adjusted headline earnings per share will be between 20% to 30% lower.