JOHANNESBURG (Reuters) – South African cement maker PPC Ltd reported flat full-year profit on Tuesday as growth in some of its sub-Saharan markets was offset by slack demand at home.
PPC, which has been roiled by a battle between its former chief executive and the board, cut its dividend by 27 percent, helping send its shares down 3.2 percent to 26.10 rand by 0723 GMT.
The company is on a push to ensure that 40 percent of its revenue comes from outside of South Africa in the next few years, to offset weak demand inAfrica’s most developed economy.
South Africa has been hit by weak consumer spending, inflation and waves of labour unrest in the mining industry.
PPC’s headline earnings for the year to end-September totalled 176 cents, the same as last year. It said it would PAY a full-year dividend of 114 cents a share, from 156 cents a year earlier.
Shareholders are due to vote on Dec. 8 whether or not to remove the company’s board, a decision that will likely bring an end to a public quarrel that has undermined investor confidence.
Former Chief Executive Ketso Gordhan is fighting to return to the company as a board member and has won the backing of three shareholders who have called for a vote to reconstitute the board.
The power struggle between Gordhan and the directors erupted in September when he abruptly resigned after the board blocked him from firing his chief financial officer.
