M&R expects higher earnings

Construction group Murray & Roberts (M&R)on Friday said it expected diluted headline earnings per share for its first half and full 2008 financial year to be between 40% and 50% higher than last year.

Diluted headline earnings per share of R1,35 was reported in the first half to end December 2006 and diluted headline earnings of R3,25 was recorded for the full year to end June 2006.

The improved outlook comes follows the securing of a R7bn, seven-year contract from power utility Eskom.

M&R secured the structural steel fabrication, erection and mechanical installation works for the Medupi Boiler package, comprising six units at a value of about R7bn over a period of seven years.

The company also said in a statement to the JSE that recapitalisation of subsidiary company Clough had been approved by shareholders at its recent annual general meeting.

Including the profit on sale of operations non-core to Clough, which were expected to be concluded within the current financial year, diluted earnings per share was expected to increase between 90% and 100% for the half-year and between 110% and 120% for the financial year. – I-Net Bridge

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