LONDON (Thomson Financial) - Acertec Plc. warned that reported group profits
for 2008 are expected to be substantially short of market expectations, adding
while Acertec is confident of a successful outcome to the rebar dispute, it is
unlikely that a resolution will be reached in 2008.
In its BRC UK division, a rebar supplier has failed to honour an agreement
on the basis of which BRC has entered a number of fixed price sales contracts.
Litigation has been initiated in this dispute but, in the meantime, BRC is
satisfying its rebar requirements for these sales contracts by purchasing steel
in the market, which has seen unprecedented price rises this year, the company
said.
The group added the deficit on its closed defined-benefit pension schemes
has increased significantly since Dec. 31, 2007, mainly due to the decline in
value of the quoted investments held by the schemes and a reassessment of the
underlying assumptions relating to mortality.
Following the review of its operations, the group's results for the first
half of 2008 will also reflect several one-off provisions, the company noted.
The manufacturer of engineered steel products added that Gestamp will
complete the funding and assume majority control of Acertec's 50/50 joint
venture with Gestamp Automocion SL.
Acertec said it has reviewed expected investment returns and its funding
requirements in relation to the joint venture and concluded that it is not in
shareholders' best interests to continue funding the project.
TFN.newsdesk@thomson.com
npr/jfr
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