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High-tech JSE listings rush to join high... Premier's new self-raising formula lifts... Pepkor king gets biggest NBS slic... Transnet pulls through the profit barrie... |
Transnet pulls through the profit barrier
PARASTATALS
TRANSNET appears to be over the worst. It has returned to profitability in the six months to end-September after a disastrous R253-million loss in the previous financial year. However, pension liabilities, a R1,4-billion fuel bill at SAA and increased losses at parcel division PX are putting the brakes on the recovery. The transport giant reported a 20% decrease in profit to R64-million for the latest interim period, compared with R80-million over the same period in 1995. Total pension fund payments, inherited by Transnet from the old SA Railway Services, remain a headache for the transport giant. Pension and medical aid contributions in the six months totalled R1,02-billion, (interim 1995: R1,1-billion), eating away at the R1,09-billion profit. Although turnover was up 13% to R9,9-billion (R8,84-billion), operating profit fell to R1,67-billion (R1,6-billion) after a 15,4% rise in costs. Finance charges were 12,2% up to R570-million, as borrowings rose by 16% to R11,5-billion (R9,9-billion), mainly due to a R1-billion Samurai bond taken up in the period. Saki Macozoma, managing director of Transnet, says the sharp rise in operating costs reflected the impact of the weaker rand on fuel prices. All but two of its business divisions reported increased bottom-line earnings. SAA was the hardest hit by the higher fuel bill, reporting a loss of R84-million (profit of R141-million) over the six-month period. The airline's turnover increased to R2,8-billion (R2,3-billion), although the strike by white-collar workers cost it about R60-million. Zukile Nomvete, executive director in charge of SAA, which is line for partial privatisation, expects fuels costs in the current financial year to hit R1,4-billion - a 75% hike from R800-million in 1995/6 - to be "passed on to the consumer". Loss-making PX, the container shipment and consignment unit, suffered another loss after finance costs to R194-million (R169-million). The division increased turnover to R280-million from R264-million. Joe Ndhlela, executive director responsible for PX, says the division, currently being restructured, should swing into profits in 1998. Portnet, the ports business, continued its good 1995 performance by reporting taxed profits of R852-million (R709-million) on the back of a R1,8-billion (R1,5-billion) turnover. Spoornet, Transnet's largest operation, is also on the recovery track with a 72% rise in earnings to R296-million. In the year to end-March this year its profits fell from R734-million to R98-million. Autonet, which looks set to be the first Transnet division to be fully privatised, increased profits to R11-million (R6-million) while Petronet's income jumped 56% to R136-million (R87-million). Top of page
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