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Thursday, February 18, 2010
AUDITED FINANCIAL RESULTS TO 31 DECEMBER 2009 Grindrod Limited generated earnings of R873 million for the year ended 31 December 2009 (2008: R2 157 million), down 60% on those achieved in the prior year when shipping enjoyed an unprecedented market boom. The 2009 results were recorded against a backdrop of major global recession, volatility and uncertainty in financial, commodity and shipping markets, low trade volumes, softer commodity prices and increased credit and counterparty risk. A final ordinary dividend of 30 cents was declared. The strategy to diversify the group from shipping to a broader based freight and logistics operation has “paid dividends” and contributed 50% of group earnings. These operations include Freight Services, Trading, Ships Agencies and Financial Services. In the shipping division, it is noteworthy that the contract cover and efficient ship operation during the major collapse in shipping markets ensured earnings outperformed market rates at the time. Given that drybulk shipping makes up less than half of group profits as well as the high level of contract cover, the Baltic Dry Index (“BDI”) is not considered a reliable measure of Grindrod’s performance and prospects. It is anticipated that all divisions will benefit from improving economic and commodity cycles in 2010 No ship sales are planned in the current year. However, the group has very little debt and significant balance sheet capacity to expand its various businesses. The Company has recently been awarded top spot in the Top 100 Companies awards for best performance over 10 years, achieving a 58% compounded growth since 1999. Grindrod celebrates its 100 year anniversary in 2010!
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