Company news in brief
SAA cancels flights due to union strike
State airline South African Airways (SAA) has cancelled "nearly all" flights scheduled for today because of a strike over wage increases planned by a majority of employees, television news channel eNCA said.
Unions representing about 3,000 of its 5 000-strong workforce said on Wednesday that cabin crew and other workers at SAA would strike over the airline's refusal of salary hikes and a plan to cut more than 900 jobs.
The state-owned airline flies around 6.8 million passengers annually to six continents with dedicated routes to New York, London and Hong Kong among its eight international offerings.
The airline is also without a permanent chief executive and has yet to file annual results for the two most recent financial years because of concerns about its viability as a business.
SAA said on Wednesday it might never recover if a strike by labour unions goes ahead, underscoring how close the state-owned company is to collapse.
SAA's acting CEO Zuks Ramasia said in a statement that the airline had made overtures to unions to resolve a wage impasse and get their buy-in for a turnaround plan. But she said the strike would "exacerbate rather than ameliorate our problem, and will result in a set of circumstances from which there may well be no recovery". – Nampa/Reuters
Mediclinic first-half core earnings up 4%
Mediclinic International Plc reported a 4% rise in half-year core earnings yesterday as the healthcare company's Swiss business adjusted to regulatory changes and its South African and Middle Eastern operations performed well.
The private healthcare group reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of 222 million pounds (US$284 million) for the six months to Sept. 30, up from 213 million pounds a year earlier. – Nampa/Reuters
SPAR posts profit rise despite consumer pessimism
South African retailer and wholesaler SPAR Group said on Wednesday that normalised annual profit rose 10% in its latest financial year as it rode out poor consumer sentiment across all of its markets, sending its shares up more then 6%.
SPAR, a grocery chain which also sells building materials and medicines in Southern Africa, has been expanding in Europe amid a weak economy at home, but has also faced troubles in newer markets such as Ireland and Switzerland.
SPAR's headline earnings per share (HEPS), the main profit measure in South Africa, stood at 1 129.1 cents for the full-year ended Sept. 30, higher than 965.7 cents a year earlier.
On a normalised basis, which adjusts for expected future profits, foreign exchange losses and business acquisition costs, HEPS rose by 9.9% to 1 160.6 cents.
In its home market, SPAR faced a stagnant economy, with high unemployment and rising living costs putting pressure on consumers' wallets. However, it managed to grow turnover in its Southern Africa division by 8%. – Nampa/Reuters
Absa to appoint former c.bank deputy as CEO
Former South African Reserve Bank deputy governor Daniel Mminele will be appointed chief executive of Absa, the BusinessDay newspaper reported on Wednesday, citing anonymous sources.
Absa spokeswoman Phumza Macanda said the bank would not comment on speculation.
Mminele, who retired as second-in-command at the central bank in June after serving more than 10 years there, would be Absa's first black chief executive if appointed.
Long-time Absa boss Maria Ramos, at the helm when UK-based Barclays exited an 11-year controlling stake in 2017, retired earlier this year, with the bank saying in August it had completed a selection process for a successor.
Absa has lost market share in the last decade, slipping to third largest in terms of assets, and also faces increasing competition from new digital players Discovery Bank and TymeBank.
The lender reported a 5% rise in first-half profit in August but a drop in its corporate and investment divisions. – Nampa/Reuters
BHP names Mike Henry as CEO
BHP Group Ltd named Mike Henry to replace Andrew Mackenzie as the world's biggest miner's new chief executive officer next year.
Mackenzie will retire on Dec. 31, ending nearly seven years in charge of the global miner, and over a decade with the company. Henry, BHP's current president of operations minerals in Australia, will take over from Jan. 1, the miner said.
Under Mackenzie's tenure, BHP has grappled with investor pressure to consider drastic changes in management to tackle challenges like cutting costs, a return to lower iron ore prices, and reputational damage after a Brazil dam disaster.
Earlier this year, Reuters reported that some institutional investors in Australia were pushing BHP to consider external candidates to replace Mackenzie as CEO.
"Fresh leadership will deliver an acceleration in the enormous potential for value and returns that will come from BHP's next wave of transformation," Mackenzie said in a statement. – Nampa/Reuters
State airline South African Airways (SAA) has cancelled "nearly all" flights scheduled for today because of a strike over wage increases planned by a majority of employees, television news channel eNCA said.
Unions representing about 3,000 of its 5 000-strong workforce said on Wednesday that cabin crew and other workers at SAA would strike over the airline's refusal of salary hikes and a plan to cut more than 900 jobs.
The state-owned airline flies around 6.8 million passengers annually to six continents with dedicated routes to New York, London and Hong Kong among its eight international offerings.
The airline is also without a permanent chief executive and has yet to file annual results for the two most recent financial years because of concerns about its viability as a business.
SAA said on Wednesday it might never recover if a strike by labour unions goes ahead, underscoring how close the state-owned company is to collapse.
SAA's acting CEO Zuks Ramasia said in a statement that the airline had made overtures to unions to resolve a wage impasse and get their buy-in for a turnaround plan. But she said the strike would "exacerbate rather than ameliorate our problem, and will result in a set of circumstances from which there may well be no recovery". – Nampa/Reuters
Mediclinic first-half core earnings up 4%
Mediclinic International Plc reported a 4% rise in half-year core earnings yesterday as the healthcare company's Swiss business adjusted to regulatory changes and its South African and Middle Eastern operations performed well.
The private healthcare group reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of 222 million pounds (US$284 million) for the six months to Sept. 30, up from 213 million pounds a year earlier. – Nampa/Reuters
SPAR posts profit rise despite consumer pessimism
South African retailer and wholesaler SPAR Group said on Wednesday that normalised annual profit rose 10% in its latest financial year as it rode out poor consumer sentiment across all of its markets, sending its shares up more then 6%.
SPAR, a grocery chain which also sells building materials and medicines in Southern Africa, has been expanding in Europe amid a weak economy at home, but has also faced troubles in newer markets such as Ireland and Switzerland.
SPAR's headline earnings per share (HEPS), the main profit measure in South Africa, stood at 1 129.1 cents for the full-year ended Sept. 30, higher than 965.7 cents a year earlier.
On a normalised basis, which adjusts for expected future profits, foreign exchange losses and business acquisition costs, HEPS rose by 9.9% to 1 160.6 cents.
In its home market, SPAR faced a stagnant economy, with high unemployment and rising living costs putting pressure on consumers' wallets. However, it managed to grow turnover in its Southern Africa division by 8%. – Nampa/Reuters
Absa to appoint former c.bank deputy as CEO
Former South African Reserve Bank deputy governor Daniel Mminele will be appointed chief executive of Absa, the BusinessDay newspaper reported on Wednesday, citing anonymous sources.
Absa spokeswoman Phumza Macanda said the bank would not comment on speculation.
Mminele, who retired as second-in-command at the central bank in June after serving more than 10 years there, would be Absa's first black chief executive if appointed.
Long-time Absa boss Maria Ramos, at the helm when UK-based Barclays exited an 11-year controlling stake in 2017, retired earlier this year, with the bank saying in August it had completed a selection process for a successor.
Absa has lost market share in the last decade, slipping to third largest in terms of assets, and also faces increasing competition from new digital players Discovery Bank and TymeBank.
The lender reported a 5% rise in first-half profit in August but a drop in its corporate and investment divisions. – Nampa/Reuters
BHP names Mike Henry as CEO
BHP Group Ltd named Mike Henry to replace Andrew Mackenzie as the world's biggest miner's new chief executive officer next year.
Mackenzie will retire on Dec. 31, ending nearly seven years in charge of the global miner, and over a decade with the company. Henry, BHP's current president of operations minerals in Australia, will take over from Jan. 1, the miner said.
Under Mackenzie's tenure, BHP has grappled with investor pressure to consider drastic changes in management to tackle challenges like cutting costs, a return to lower iron ore prices, and reputational damage after a Brazil dam disaster.
Earlier this year, Reuters reported that some institutional investors in Australia were pushing BHP to consider external candidates to replace Mackenzie as CEO.
"Fresh leadership will deliver an acceleration in the enormous potential for value and returns that will come from BHP's next wave of transformation," Mackenzie said in a statement. – Nampa/Reuters
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