So far, not bad

Last week’s earnings were mixed, pointing to some ongoing weaknesses in SA.

PHILADELPHIA -  Last week a number of South African companies released results as the first earnings season of 2010 rumbled on, and although not uniformly good, there were some encouraging numbers. Below, I pick out some of the important results and discuss how they point to broader economic trends.

Tongaat Hulett (JSE:TON)
The sugar giant reported headline earnings per share (heps) up 44% for the year ended December 2009, mostly thanks to strong sugar prices. These numbers can be understood as part of a general global trend; food prices are high, and in many cases rising, and well-run agri-businesses are set to benefit.

There are a few drivers behind the phenomenon of rising food prices. First, there is higher demand for food worldwide, the result of a rising global population and a growing middle class in many parts of the planet, like China. Second, there have be...