|
|
Article: South Africa: Construction major s steel unit takes pain.
- Article from:
- TendersInfo
- Article date:
- September 26, 2009
CopyrightCOPYRIGHT 2009 Al Bawaba (Middle East) Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
The manufacturing and processing division of Aveng - more specifically, Trident Steel - marred what was an otherwise solid performance from the JSE-listed construction group in the financial year ended June 30.
Revenue in this division dropped from R8,5-billion in 2008, to R8-billion in the 2009 financial year, while operating profit shrunk from R1,4-billion to R654-million.
Operating margin in the division more than halved from 16,6% to 8,2%.
"We have seen challenging conditions in the steel and manufacturing businesses," says CEO Roger Jardine.
Aveng has been chasing improved margins over the last year as Jardine believes the ...