Shareholders are advised that the company anticipates that headline earning per share (HEPS) and earnings per share (EPS) for the six months to 31 December 2010 will be between 15% and 20% lower than that of the corresponding six month period ended 31 December 2009. Notwithstanding tighter margins in the South African Construction segment, earnings by Grinaker-LTA are only expected to be marginally down on the corresponding period last year. Whilst Grinaker-LTA is experiencing some payment delays on a few domestic contracts, the group"s revenue recognition policy is conservative. <
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> Earnings by subsidiary company, McConnell Dowell Corporation ("MacDow") which operates in the Australasia and the Pacific Rim Construction segment are lower than the corresponding six month period as a result of the strength of the Australian dollar and some problematic contracts. The recent floods experienced in the Queensland and Victoria regions of Australia have had an impact on several projects across the sectors served by MacDow. While costs will be mitigated wherever possible, MacDow cannot yet accurately estimate the full impact. Delays on contracts are however expected to restrict revenue recognition and therefore adversely affect the performance of MacDow for the second half of the financial year. It is pleasing to report that the group has not had any employees injured in the flood. <
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> The Manufacturing and Processing segment has remained under significant operating pressure due to a difficult trading environment and lower steel prices which has contributed to the group"s anticipated decline in earnings. The Opencast Mining segment has continued to improve its contribution to group earnings in spite of the impact of a strong currency on its US dollar denominated contracts. Earnings for the period include the proceeds from the Aquarius settlement agreement of R87 million as advised in the company"s announcement of 19 August 2010. The results for the six month period ending 31 December 2010 will be released on Monday, 14 March 2011.<
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