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| OPERATIONAL REVIEW |
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| CONSTRUCTION MATERIALS & SERVICES |
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| Construction materials & services operations will continue to benefit from the expected growth in infrastructure investment in the period leading up to 2010 and beyond. |
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| Jerome Arendse, Willem Pienaar, Paul Deppe, Lee Cochrane, Phillip Hechter, Judy van Es |
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Revenue |
EBIT before
exceptional items |
| (R millions) |
2007 |
2006 |
2007 |
2006 |
| CONSTRUCTION MATERIALS & SERVICES |
4 730 |
3 206 |
763 |
479 |
| Steel |
2 221 |
1 666 |
168 |
127 |
| Infrastructure |
1 245 |
980 |
302 |
218 |
| Housing |
856 |
325 |
160 |
63 |
| Services |
408 |
235 |
133 |
71 |
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Andrew Langham,
Rob Noonan |
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View Revenue and EBIT chart  |
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The business operations in the construction materials &
services sector have again delivered exemplary
performances, reaping the benefits of a continuous
restructuring program which has positioned the Group
for the improved levels of gross fixed investment in
Southern Africa and Middle East.
Following his appointment as executive responsible for
the Group's SADC Construction operations, including
newly acquired Concor, Keith Smith transferred executive
responsibility for this business cluster to Andrew
Langham on 30 June 2007. Over the past seven years
Keith has established a globally benchmarked and
market leading group of businesses supplying precast
concrete, reinforcing steel, asphalt and clay products to
the construction industry. Andrew rejoined the Group on
1 February 2007. |
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| Performance |
Reinforcing steel construction products and trading
services contributed increased revenue of R2,2 billion
(2006: R1,7 billion) and an operating profit up 32% to
R168 million (2006: R127 million).
Precast concrete products and asphalt infrastructure
services continued to underpin the profitability of this
cluster, with operating profits up 39% to R302 million
(2006: R218 million) on revenue of R1,24 billion (2006:
R980 million).
Clay, concrete and other building products delivered revenue
of R856 million and operating profit of R160 million. This includes a maiden contribution from Technicrete,
acquired as part of Concor.
Specialist services to the construction and infrastructure
sector delivered operating profits of R133 million
(2006: R71 million) on revenues of R408 million (2006:
R235 million). This includes a growing presence in the
Middle East market. |
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Operational review