Nampak sees 15%-25% higher earnings

The group expected earnings per share from continuing operations to be between 20% and 30% higher than the 130.9 cents per share previously.

The increased earnings, Nampak said, were due mainly to improved results from the diversified canning, corrugated and flexible operations, the turnaround or sale of underperforming operations and a reduction in finance charges due to lower gearing.

HEPS from continuing and discontinued operations were expected to be between 15% and 25% higher than the 149.7 cents per share for the year ended September 2010.

EPS from continuing and discontinued operations were seen between 20% and 30% lower than the 140.5 cents per share in 2010, due to the loss on the sale of the European folding cartons and healthcare businesses, which were sold effective February 28, 2011.

The I-Net Bridge consensus forecast is for diluted HEPS of 165.60 cents, and a dividend per share of 92 cents. The forecast for 2012 is for diluted HEPS of 177 cents and a dividend of 110.60 cents.

Earlier this week Nampak acquired the remaining 50% share in its glass packaging business from Wiegand-Glas for R938 million.

Nampak CEO Andrew Marshall said: "this acquisition is part of our strategy of investing in our core businesses where we believe we have competitive advantages. As a result, Nampak is looking to grow its glass operations in SA and the rest of Africa. This will be more easily achieved by us owning 100% of the glass business.

"Although they will no longer be shareholders in the business we are pleased that Wiegand-Glas have agreed to remain as our technical service provider."

Nampak reported revenue of R18.5 billion in 2010, with an operating profit of R1.3 billion

It reported fully diluted HEPS of 147.7 cents and fully diluted EPS of 138.9 cents.

The group declared a dividend and cash distribution per share of 83.0 cents.

In noon trade on Friday, shares in Nampak declined 33 cents or 1.50% to R21.67 on the JSE having reached a one year best figure of R23.50 in December 2010, and a worst level of R19.43 in August.

Nampak expects to publish its results on Wednesday, November 23.