Thursday, July 7, 2011
Kumba sees rise in H1 earnings on higher prices
Thu Jul 7,2011
* Sees headline EPS between 26.80-28.70 rand
* Says higher iron ore exports prices lift earnings
JOHANNESBURG, July 7 (Reuters) - Kumba Iron Ore (KIOJ.J: Quote) said on Thursday it expects a rise in first-half earnings lifted by higher iron ore export prices.
Kumba, the world's 10th-largest iron ore producer and a unit of Anglo American (AAL.L: Quote), said it expects headline earnings per share for the six months to end-June at between 26.80 rand and 28.70 rand.
This compares with headline earnings per share of 20.28 rand reported a year earlier.
Headline earnings are the main profit gauge in South Africa and strip certain one-off and non-trading items.
"The increase in earnings is primarily attributable to higher export iron ore prices which were partially offset by the strengthening of the average exchange rate of the rand to the U.S dollar during the period," the company said in a statement.
The local currency has gained 13 percent against the dollar over the past 12 months.