Aug 2006 Financial News

Ansa McAl Releases Half Year Results

Aug 25, 2006

Ansa McAl (AMCL) continued on its growth path for the half year ended June 30, 2006 with reported Earnings Per Share (EPS) of $1.02. This represents growth of 21.43 per cent in comparison to the corresponding period in 2005.

Sales grew 19.52 per cent to $1.937 billion in 2006 lead by its Automotive Division which contributed 37 per cent to Sales. This was a change from the comparative period last year in which the Manufacturing & Packaging Sector lead Sales.

Operating Income rose 13.32 per cent to $315.019 million while Profit Before Taxation grew 13.16 per cent to $263.818 million. Unlike Sales, the largest contribution to Profit Before Tax came from its Brewering & Manufacturing Sector. The Effective Tax Rate fell from 20.28 per cent to 17.31 per cent. Ultimately, Profit for the period rose 17.38 per cent to $218.141 million.

During the half year, the Group’s joint venture operation, Caribbean Roof Tile Company was officially opened and the first shipment of product from this facility is being sold in the Florida market. The Company expects this venture to be successful given the continued strong demand for clay roof tiles in Southern USA.

At the current price of $40.50 and WISE’s forecasted EPS of $3.25, AMCL is trading at a price/earnings ratio of 12.46. Given that this is a low multiple for AMCL coupled with the fact that this Company is expected to produce consistent results in keeping with its Vision for 2010, we currently recommend this share as a ‘BUY’.

The Directors have recommended an interim dividend of 25 cents to be paid on November 17, 2006.

Sreshtha Tewari
WISE Research Team