The steelmaker has just issued a profit warning to prepare the market for a possible sharp deterioration in its performance in 2010.
Another half bleak for the Moroccan operator leader in the steel (Sonasid). But this time, we will not have to wait the usual course of publishing the results to realize, like what happened on the results of the first half of the year during which everyone except the company's management was surprised by the magnitude of the drop in company performance.
In fact, learning of the penalty imposed on him CDVM (Securities Ethics Council) for non-profit publication warning on its results under the first half of 2010, the steel is forced to take the initiative and communicate about the likelihood of a sharp deterioration in its economic and financial performance in 2010.
And for good reason. Sonasid continues to experience difficult times in direct relation with the fierceness of competition and the loss of dynamism in the local market.
In fact, says the company's management, it is currently facing an economic downturn which combines the factors of rising input prices (particularly for scrap), overcapacity in the local production of 40% in 2010 following the arrival three new mills and the decline in domestic consumption. Which requires the publication of a profit warning and that is what society has done, saying expect a sharp drop in earnings as of 2010. Following this warning, the reactions were not made to wait.
For example, BMCE Capital Bourse suspends its recommendation on Sonasid, "waiting to have more details on the magnitude of the decline in results."
Similarly, Attijari Intermediation believes that one should expect a recovery in activity seen Sonasid until the second half of 2011. For
this year, analysts at the brokerage firm provide a further deterioration of operational indicators Sonasid, given increased competition in its market. They believe that "it is more prudent to await the approach of the annual results have improved visibility in the market of reinforcing bars and wire rod, but also on the strategy Sonasid vis-à-vis its competitors. " Therefore, they say keep a neutral opinion on value.
Furthermore, it should be remembered that Sonasid has been penalized in October by the publication of CDVM for non profit warning the first half of 2010. In fact, the policeman of the market has sent a warning and a fine of 67,000 dirhams.
Furthermore, in addition to the obligation of publication by the society of these coercive measures on its website, it was also decided to require the directors to fulfill their legal responsibilities and take the appropriate steps to ensure that leaders meet the obligations of good public information in compliance with laws and regulations.
The CDVM him particularly criticized for ignoring the request he had sent him to issue a profit warning to announce to shareholders that its results will be worse than expected.
In addition, the Board of Directors of the Company has decided to proceed with the appointment of Ayoub Azami as new CEO with effect from 1 January 2011 and Jalil Ajdour as sales and marketing director .
Results decline at the end of June
After the first half of 2010, Sonasid performance has fallen sharply. Thus, the steelmaker has achieved a consolidated turnover of 2.2 billion dirhams, down 32% over the first half of 2009. Deterioration attributed to a decline in shipments of 33% over the same period "last year. As for EBITDA, it deteriorated from 26.1% to $ 223.1 million dirhams, representing a margin of 10.2% at end June 2010 against 9.3% a year earlier. Finally, net income of consolidated companies has declined from 45.6% to 82.8 million dirhams. source lematin.ma
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