Nov 2007 Financial News

AMCL Releases Nine Months Results

Nov 19, 2007

ANSA McAL Limited (AMCL)
Results for the Nine Months Ended September 30, 2007

For the Nine Months Ended September 30, 2007, ANSA McAL Limited (AMCL) reported Earnings Per Share (EPS) of $2.37, up a considerable 26.74 per cent or $0.50 on the corresponding period in FY06. Q307 on Q306, the Company’s EPS was up from $0.86 to $1.00, an increase of 16.28 per cent.

Third Party Turnover for the period under review amounted to $3.54 billion, up a significant 18.32 per cent or $548.27 million on the comparable period in the last financial year. Q307 on Q306, this figure grew by 16.39 per cent or $173.08 million from $1.06 billion to $1.23 billion. The Group’s Operating Income for the Nine Months was $708.35 million, up a substantial 27.82 per cent or $154.17 million from $554.17 million on the same period in FY06. Q307 on Q306, this figure was also up significantly from $239.16 million to $289.71 million, an increase of 21.14 per cent.

For the Nine Month period under review Finance Costs totaled $107.02 million, up a substantial 24.93 per cent or $21.36 million on NM06. Q307 on Q306, Finance Costs was also up a significant 122.99 per cent or $26.89 million from $21.86 million to $48.75 million.

Share of Results of Associated Companies for NM07 was $8.72 million, down a substantial 52.81 per cent or $9.76 million on the corresponding period in the last financial year. Q307 on Q306, this figure was down 43.81 per cent or $2.58 million from $5.88 million to $3.30 million. Thus, the Group’s Profit Before Taxation ended the period at $610.05 million compared to $486.99 million for NM06, an increase of 25.27 per cent.

The Effective Tax Rate for the period under review was 22.20 per cent compared to a Tax Rate of 21.99 per cent for the same period in FY06. As a result, Profit After Taxation stood at $474.65 million, up 24.93 per cent or $94.72 million on the corresponding figure for NM06.

The Chairman has stated that all sectors in the Group have continued to record growth over their 2006 year to date results. He also stated that all sectors are expected to surpass the objectives that were set at the start of the year in accordance with the Company’s “Vision 2010 Beyond Blue”. AMCL’s best performing quarter is traditionally the last quarter of the year and the Chairman has stated that early indications are that this will be the case for 2007.

AMCL last closed at a price of $47.45 on the local exchange. We are maintaining our forecasted EPS of $3.50 for FY07. At this forecasted EPS and the current price, this share is trading at a p/e multiple of 13.56 times. Additionally, using a multiple of 15 times and the forecasted EPS, this share has an expected return of approximately 11 per cent on the current price or a target price of $52.50. Thus, we continue to recommend a BUY on this share.


Gia Singh
WISE Equity Research Team