East African Cables' pretax falls 14 pct in Jan-Sept

[Invisible]

* Turnover declines 18 pct during the period
* Blames falls in metal prices and lower aluminium sales


Pretax profit for Kenya's East African Cables (CABL.NR) slid by 14 percent in the first nine months of this year to 500.2 million shillings ($6.63 million).

The firm said turnover also declined by 18 percent to 2.4 billion shillings during the period due to a fall in global metal prices and lower aluminium sales.

"The Kenyan operations continued to record growth with profits after tax increasing by 26 percent while Tanzania's profitability declined by 45 percent," the firm said in a statement.

East African Cables has operations in most of the countries in the region. It said it would pay an interim dividend of 0.50 shillings per share.


Source: Reuters (Reporting by Duncan Miriri; Editing by David Cowell)

 

[DMussa]

* Turnover declines 18 pct during the period
* Blames falls in metal prices and lower aluminium sales


Pretax profit for Kenya's East African Cables (CABL.NR) slid by 14 percent in the first nine months of this year to 500.2 million shillings ($6.63 million).

The firm said turnover also declined by 18 percent to 2.4 billion shillings during the period due to a fall in global metal prices and lower aluminium sales.

"The Kenyan operations continued to record growth with profits after tax increasing by 26 percent while Tanzania's profitability declined by 45 percent," the firm said in a statement.

East African Cables has operations in most of the countries in the region. It said it would pay an interim dividend of 0.50 shillings per share.


Source: Reuters (Reporting by Duncan Miriri; Editing by David Cowell)

Invinsible,

Hiyo fall sababu yake sio fall ya metal prices kwenye LME kwa ninachojua ni kwamba metals ni raw material katika utengenezaji wa cables so kama utapata malighafi kwa bei ya chini its definetely going to be cheaper to manufacture the cables and so in turn even the profit will go up!

Kinachotokea EA cables especially hii ya Tanzania ni kwamba they tend to rely much on doing business with Tanesco so if it happens kwamba huu mwaka hawana Tenda walioshinda kutoka Tanesco ni lazima biashara itashuka. Tanesco ni shareholder katika hii kampuni na 50% ya mapato ya kibiashara hutoka Tanesco which means the other market with a potential of 70% is not exploited. They need to reduce dependency on Tanesco for business.

Kama wao wanalaumu LME(London Metal Exchange) prices then ni vizuri pia wakajiuliza kwamba kama wao hawajauza je competitors wao wanauza au nao wanapata same hardship?

Ninachokiona kutoka kwenye kampuni kama hizi ni kwamba inafikia mahala pamoja na kubinafsishwa investors wanakosa ubunifu na uwezo wa kuendesha biashara simply kwa sababu waajiriwa wao (wakurugenzi) wanarithi ule urasimu na uendeshaji wa biashara kiholela kama ilivyokuwa kabla shirika au kampuni haijabinafsishwa.

Kwa muelekeo huu kibiashara naiona EA cables ikiingia ndani ya ukata na soon itajitangaza kufanya biashara kwa hasara katika kipindi cha mwaka huu 2009!!


LME is never an excuse here...