Metair Invesment Limited’s revenue was up 32 per cent to 3.2 billion rand for the six months ended 30 June 2014 from 2.4 billion rand for the same period in 2013.
Gross profit increased to 721.5 million rand for the period under review from 519.5 million rand in 2013.
Operating profit was also up 16 per cent to 318.7 million rand for the period from 274.1 million rand in 2013.
“Although operating profit and profit before tax was negatively impacted by the additional interest and depreciation associated with the Mutlu Akü acquisition, we are very pleased with the group’s earnings before interest, tax, depreciation and amortisation generation, which improved to 485 million rand, compared to 375 million rand in 2013,” Metair said in a statement.
[DATA MTA:Metair Investments Limited] is a holding company headquartered in South Africa, which manages firms related to the manufacture and distribution of automotive industry products.
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Profit before taxation was recorded at 309.4 million rand for the period from 307 million rand in 2013, while headline earnings per share decreased 16 per cent to 120 cents from 143 cents in 2013.
“The overall trend in the original equipment manufacturing (OEM) segment was a general decline in production volumes, as manufacturers launch new models. Model launches are necessary to meet the latest carbon emission standards taking effect in 2016,” Metair explained, adding that its Aftermarket segment also showed strong growth in South Africa.
Romania and Turkey, which are the Aftermarket segment’s major markets, were however softer during the period because of a warmer than usual winter period.
Where Metair’s non-automotive and export segment, the group now exports to 46 countries, with strong demand coming from major export markets like Middle East, Africa and Russia during the period.
The acquisition of Mutlu Akü, according to Metair, has assisted the group in becoming a leading international Start/Stop lead acid battery supplier. Mutlu Akü is already supplying three OEM customers with Start/Stop batteries from this technology.
Metair acquired Mutlu Akü, a Turkish battery maker, in October last year with the aim of capturing a larger share of the anticipated growth for start-stop batteries in the market.
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“Metair remains committed to executing its strategy and achieving the key performance criteria for 2014. Our financial performance is dependent upon, inter alia, OE volumes, a stable environment, internal inflation and the exchange rate. Subject to these factors, we expect the financial performance in 2014 to be satisfactory,” said Metair.