JOHANNESBURG – Cement maker PPC said on Monday that it expected its second half earnings to drop as much as 45% partly due to rising finance costs, sending its shares falling by more than 8%. PPC said earnings for the six months to end March 2015 would likely come in between 72 and 53 South African cents.
Its shares initially lost 8,5% to a low of R21,66 but recovered to stand 3% lower at 11:20am.
“Earnings per share for the first half of 2015 are anticipated to reflect a year-on-year decline mainly due to last year’s once off tax credit combined with increased finance costs in this year,” it said in a statement.
PPC said earlier on Monday that sales volumes in the three months to the end of December 2014 had grown following its acquisition of a majority stake in Safika Cement in 2013.