PPC shares give up gains after headline earnings warning

PPC's share price plunges more than 14.5% to R4.87 as it warns shareholders at its annual general meeting that its interim headline earnings a share could fall as much as 85%.

PPC said it expected to report on November 16 that its headline earnings a share for the six months to September would be in the range of 8c to 19c‚ or 65% to 85% lower than the matching period’s.

The cement maker said the earnings drop was due mainly to financing costs of the R2bn it was forced to raise in June to redeem bonds after its credit rating was cut to junk status.

The matching period’s earnings had been boosted by R117m profit from the sale of assets‚ it said.

Further‚ devaluation of currencies‚ in particular the DRC and Rwanda‚ against the US dollar led to revaluation losses being recognised on foreign currency denominated receivables and borrowings in the current reporting period‚ the trading statement said.

PPC announced at its AGM that nonexecutive director Bridgette Modise had decided not to make herself available for re-election.