COMPANY REVIEW - METAIR

Metair is involved in the manufacture and supply of motor vehicle components for the original equipment and aftermarket parts markets and industrial products for the mining, telecommunications and retail industry. Components are supplied to South African assemblers of new vehicles (OEMs), but the group also supplies components for the replacement market and a portion of output is exported. The group is also expanding its non-automotive market and green technology.

Number of Employees - 5 552

Revenue for the year ended 31 December 2011 rose to R4.3 billion (2010: R3.8 billion)
Gross profit increased to R917.4 million (2010: R794.2 million)
Operating profit soared to R576.2 million (2010: R402.9 million)
Profit attributable to equity holders of the company jumped to R408.4 million (2010: R277.7 million)
Furthermore, headline earnings per share grew to 260cps (2010: 189cps).

Prospects

The South African automotive market is inextricably linked to global developments and while Metair sees the OE market as being flat for 2012, they expect some growth from the aftermarket sector on the back of strong sales of new vehicles in the years preceding the global financial crisis. Despite the many challenges facing the industry, the board believes that the group should sustain its performance in 2012. Volume and exchange rate fluctuations continue to influence the group's performance. Metair's focus for the coming year is on executing their strategy effectively developing markets for the new Start/Stop batteries.

Last traded at R23.80

Standard Bank Securities