Shareholders were advised that Aveng anticipates that its earnings per share and headline earnings per share for the interim period to December 2011 will be lower than that of the comparative period ended 31 December 2010 by between 30% and 35%. (December 2010: earnings 107.0 cents: headline Earnings 106.9) <
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> The reduction in earnings is primarily due to highly competitive construction and engineering markets, compounded by unresolved claims and some execution difficulties on a number of large projects. Despite a modest improvement in revenue, the South African construction and engineering business returned an operating loss for the six month period to December 2011. This deterioration was primarily as a result of underperforming contracts and project risk provisions. Unresolved claims on the sub-contracted steel fabrication projects for the Medupi and Kusile power plants continue to adversely impact the profitability and liquidity of this division. <
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> Despite the difficult market, particularly in South Africa, the group"s two year order book increased by 24% from R37 billion at 30 June 2011 to R46 billion at 31 December 2011, driven primarily by the demand from the mining and energy sectors in Australia. The Australia and Pacific construction order book increased by 62% to R30.6 billion. The interim results for the year to 31 December 2011 are expected to be released on Wednesday, 14 March 2012.<
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