Delta Electrical reported on Monday that headline earnings per share for the six months ended 27 June are forecast to be between 57 cents and 69 cents from a 2007 headline loss per share of 60.8 cents. Earnings per share for the six months are forecast to be between 63 cents and 75 cents from a 2007 loss per share of 60.8 cents.

Earnings and headline earnings before taxation for the six months ending June 27 are both forecast to be between R40-million and R46-million from losses and a headline losses before taxation of R31-million in 2007.

"Modest sales volume increases and improved selling prices have provided improved margins, which have benefited trading profit," said the company.

"With a reduction of Australia's EMD stocks and improved trading profit substantial cash inflows are forecast for the six months ending 27 June 2008, and half year cash balances are forecast to be in excess of R300-million (December 2007: R218.3-million). The planned R112.6-million capital reduction will be paid from the half year cash balance," it added.

Cash flows during the half year reflect the reduction of Australian working capital as well as the payment of substantial redundancy and de-commissioning costs.

"While the half year cash flows do not include proceeds from the sale of the group's land, plant or equipment in Australia, opportunities for realising value from those assets continue to be developed with favourable prospects."

On 13 June, the Japanese government announced provisional duties on the import of EMD from China (34.3 percent to 42.7 percent), Spain (14.0 percent), Australia (29.3 percent) and South Africa (14.5 percent).

"The provisional duties will be effective from 14 June and efforts to demonstrate that such duties are not warranted, and to agree price undertakings, continue. Final determinations are expected before October 2008," said Delta.

"The US Department of Commerce and US International Trade Commission continue to consider the final imposition of duties on EMD imported from China (provisionally 236.8 percent) and Australia (provisionally 120.5 percent). They also continue to consider whether to impose retrospective duties on EMD imported from Australia within 90 days prior to the notification of provisional duties during March 2008. Final determinations from the US DOC and US ITC are expected during August and September 2008, and as such no allowance for the payment of US retrospective duties is made in the forecast financial information on which this trading statement is based. Import of EMD produced at the Group's Australian plant was discontinued in March 2008 following the closure of that plant," it added.

Delta's results for the six months are expected to be released on or about 11 August.

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