Brief: Texaf announces further sales erosion at Carrigres
05/05/2017 07:00
May 5 (Reuters) - Texaf Sa TEXB.BR
* Texaf:Further sales erosion at Carrigres impact on the
consolidated result's forecast and impairment of the quarry
* Economic situation in the DRC continues to deteriorate
* Situation has an impact on Carrigres, Texaf's sandstone
quarry, whose sales declined again in the first quarter of 2017
(-0.35 million eur, i.e. -39% compared with the Q1 2016)
* Carrigres has been loss-making during that quarter
* Management is putting in place measures that will have
their full impact in 2018: reduction of personnel and
reorganization of production.
* A loss in 2017 for Carrigres can't be avoided
* In 2017, the group's cash position will also be affected
by the situation as well as by the cost of the measures taken at
carrigres. However, this will not jeopardize the real estate
investments nor the distribution of dividends
* Performance of real estate activities (rents Q1 : 3.99
million eur against 3.74 million eur in 2016) should limit
decrease in consolidated profit before tax to about 0.5 million
eur versus 2016.
* Write-Down of eur 3.3 million on the value of the quarry
(i.e. 35% of its net book value).
* This impairment does not affect the cash position
Source text: http://bit.ly/2pGd9SM
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