South African automotive and energy component maker Metair Investments Limited’s full-year profits rose 23% after an improved performance from its automotive unit, the firm said on Thursday.
Headline earnings per share (heps) for the year ended December 31 increased to 281 cents from 229 cents in the previous comparable period. Revenue rose 6.3% to R9.5 billion ($805 million).
Turnover at the company’s automotive components unit recovered strongly, growing by 5.2% to R4.4 billion, as production ramped up and stability returned to the businesses after a new model launch in 2016, it said.
Revenue at the company’s energy storage businesses in Turkey and Romania grew by 31% in local currencies.
The automotive components unit, which makes vehicle components such as brake pads and shock absorbers, contributed 41% of group revenue and 42% of operating profit.
Metair, which also has operations in Turkey and Russia, has been growing its international footprint by acquiring majority stakes in battery manufactures in Romania and Istanbul to help develop its presence in the secondary automotive sector.
The company said it has a positive outlook for 2018 for its automotive component business in South Africa as it expects vehicle production to improve there.
“Metair’s outlook for South African vehicle production in the medium term has improved and we believe volumes of 650 000 to 700 000 for the industry as a whole (around 10% to 20% above the 563 857 units produced in 2017) could be achievable,” Metair said. ($1 = R11.80)