JSE-listed ARB Holdings on Wednesday said it expects to report lower earnings per share (EPS) and headline earnings per share (HEPS) for the six months ended December 31.
In a trading update to shareholders, the company noted an expected 35% to 40% decline in EPS and HEPS to between 22.62c and 24.5c during the half-year under review.
ARB achieved EPS and HEPS of 37.7c and 37.62c, respectively, during the comparable six months in 2017.
“While earnings in the electrical division have been negatively affected by the reduction in the number of large projects; decreased spending from Eskom; and copper supply shortages affecting the supply of power cables, the majority of the expected decrease arises from an International Financial Reporting Standards (IFRS) adjustment,” ARB said in a statement.
“This noncash IFRS adjustment resulted from an increase in the valuation of the put option liability issued to the noncontrolling interests in Eurolux, of between R9-million and R11-million, compared with the R13.8-million income (or decrease in valuation) in the comparative period last year,” it explained.
This represents a decrease in the EPS and HEPS of between 9.7c and 10.55c.
ARB plans to publish its financial results for the six months ended December on February 8.