KAP Industrial expects sharp fall in earnings due to lockdown

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The company says operating profit from continuing operations will be 19%-28% lower in the year to June 30

KAP has, in recent years, trimmed its consumer-facing interests down to coach lines Citiliner and Greyhound. Picture: SUPPLIED

Automotive and logistics business KAP Industrial said on Friday that it expected earnings to have fallen at least 60% in the year to end-June, largely due to the effects of the national lockdown. Headline earnings per share will be between 12.7c and 15.0c, a fall of between 60% and 70% from the comparable period due to “the cyclical imbalance in global polymer supply and demand and the resultant asset impairments”, it said.

The company said operating profit from continuing operations will be between 19% and 28% lower in the year to June 30 compared to the previous period. “Trading conditions post year-end have been encouraging and the company’s financial forecasts reflect that the company will be profitable, cash generative and will remain within its financial covenant ratios for the foreseeable future,” the industrial group said.

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