An aluminium coil is seen inside a Hulamin factory. Picture: Supplied An aluminium coil is seen inside a Hulamin factory. Picture: Supplied
Durban - Aluminium supplier Hulamin on Monday said it was considering investments in technology in a bid to diversify its business.
The company said the decision to refocus came as its predictions showed that aluminium prices would remain unpredictable in the near future. Chief executive Richard Jacob said technology and the automotive sectors would play a critical role in how the company performs in the future.
Jacob said the company wanted to keep abreast of technological developments to help it to decide on the investment path.
“We must invest in technology, cut unnecessary wastage and reduce costs,” he said. “In that case we would be more efficient on how we perform our duties as a company in order to produce good results.”
Jacob said Hulamin expected to maintain the improved sales and manufacturing performance achieved in 2016 going forward in 2017 despite the unpredictable market.
The company yesterday reported that group sales volumes increased 17 percent to 232000 tons for the year to end December.
It said one of its produce, Hulamin Rolled Products, was the major contributor to the upsurge in sales, improving 19 percent to 214000 tons.
The group said the manufacturing output was consistent throughout the period, while improved product yields, lower unit costs and a higher level of value-added products made significant contributions to the improved profitability.
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It said headline earnings per share (HEPS) improved by 222 percent to 119cents a share, up from 37c a share in 2015.
“This record set of results is based on a much improved and more consistent manufacturing performance, tighter capital discipline and a weaker rand against the dollar. In spite of a stronger currency environment in the second half, Hulamin performed particularly well in this period, improving HEPS from 48c per share in the first half of 2016 to 71c per share in the second, and improving cash flow from R33 million to R382 million over the same period,” Jacob said.
The board declared a final dividend of 15c a share for the year. Jacob said currency fluctuations would determine the group’s performance in the future.
He noted:“We are facing an uncertain future in terms of our next results. However, there are areas that the company can control, like I said before, that is cutting costs and eliminating wastage. It is one area I think we could have done better in.”
Hulamin shares dropped 3.76 percent on the JSE to close at R6.40.