PPC share price tumbles on earnings warning

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Headline earnings per share for the six months to end-September are expected to fall as much as 85%

Cement producer PPC’s shares slumped more than a fifth in early trade on Thursday after the company said interim earnings could fall more than 80% because of low demand for its products in SA and shortage of foreign currency in Zimbabwe.

The company’s disappointing performance comes amid a surge in imports, lack of infrastructure investment, mooted price increases in Southern Africa and weak consumer demand. PPC owns 70% of PPC Zimbabwe, which includes a clinker manufacturing operation at Collen Bawn and two milling plans in Bulawayo.

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