ANOTHER VINTAGE YEAR FOR REUNERT
Monday, 19 November 2001
By: Carina de Klerk
Reunert Limited, the JSE listed electronics and electrical engineering company, produced another set of excellent results for the year ended 30 September 2001. With turnover up 27%, a 38 % increase in operating profit and headline earnings per share up 25% to 176 cents per share, the group's performance is highly commendable.
Commenting on the results, CEO Gerrit Pretorius said, with a few exceptions, the group companies had performed creditably.
"The whole Nashua group had an excellent year," said Pretorius, "The office automation division produced strong growth in earnings and continued to build the Nashua name as one of the premier brands in the country."
The merger of Nashua Cellular and NedTel Cellular into the newly named Nashua Mobile, was highly successful, showing a 15% increase in market share. This company will continue to consolidate itself as the leading independent contract service provider to corporate South Africa and is well positioned to take advantage of new business developments. Innovative products and services include mobile banking, an electronic pre-paid recharge facility as well as the conversion of all users onto a single, sophisticated billing system.
"Our Panasonic division has increased profit although turnover levels remain flat. This is primarily due to improved asset management and tighter government control on the importation of 'grey' products."
Commenting on the Electrical Engineering and Cabling businesses, Pretorius said that Circuit Breaker Industries had performed well and, following several acquisitions, had a product offering which provided a strong base for future growth. While overall turnover had increased by 26%, export sales were up by 48%. "This is an area where we expect substantial long-term future growth", said Pretorius.
Pretorius said that, while the telecommunications cable market was difficult, with the downturn in international spend impacting on fibre optic cable sales, the slump is expected to be temporary. In anticipation of the upturn expected in 2003 ATC is expanding its capacity to one-million fibre kilometres. On the energy cable side African Cables had an excellent year with revenue improving by 38% and operating profits increasing almost ten-fold from R3,9 million to R38 million.
The selection of Siemens Telecommunications (Sietel) to supply the Cell C wireless infrastructure and the Eskom Enterprise fixed-wire network for the second fixed-line operator, confirms its position as the leading telecommunications network supplier in Southern Africa.
"Focused investment in market and product development in key areas such as the Nashua operations and CBI, will continue," says Pretorius. "Reunert will increasingly concentrate on the lucrative export markets as it already enjoys a high market share locally. We also expect real growth to continue in the 2002 financial year, albeit at a lower level than that achieved in the year under review."
Click here to view the financial results for 2001.
For more information contact
Carina de Klerk
Tel 011 517 9033 or 517 9000
Cell 083 631 5743