{"id":10227,"date":"2012-04-24T16:29:33","date_gmt":"2012-04-24T14:29:33","guid":{"rendered":"http:\/\/www.myza.co.za\/04\/text-sp-summary-consol-glass-proprietary-ltd\/"},"modified":"2012-04-24T16:29:33","modified_gmt":"2012-04-24T14:29:33","slug":"text-sp-summary-consol-glass-proprietary-ltd","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/text-sp-summary-consol-glass-proprietary-ltd\/","title":{"rendered":"TEXT-S&P summary: Consol Glass (Proprietary) Ltd."},"content":{"rendered":"

\t\t<\/span><\/p>\n

<\/span><\/p>\n

<\/span><\/p>\n

SP base-case operating scenario<\/p>\n

<\/span><\/p>\n

We anticipate that Consol will achieve high-single-digit revenue growth in the
\nfiscal year ending June 30, 2012, largely as a result of selling-price
\nincreases and fairly flat volumes. We forecast that volume trends will improve
\nsomewhat in fiscal 2013. We base our assumptions on our opinion that growth in
\ndemand for glass containers in South Africa should continue to be broadly in
\nline with local GDP growth rates, which we estimate at 2.7% in 2012 and 3.6%
\nin 2013. (For more details, see “South Africa (Republic of),” published March
\n30, 2012, on RatingsDirect on the Global Credit Portal.)<\/p>\n

<\/span><\/p>\n

Consol is generally able to offset the adverse effect of energy and raw
\nmaterial cost increases through its annual selling-price adjustments and
\ncontinues to focus on cost controls and efficiency improvements. As such, we
\nforecast that EBITDA margins will remain more than 30% in fiscal years 2012
\nand 2013, which we consider to be superior compared with those of
\nglass-container manufacturers in Europe and the U.S. Consol’s large and
\ndefensible market shares, improving utilization rates (as spare capacity at
\nthe Nigel facility declines), good operating efficiency, and ability to
\ndeliver large volumes, should support the company’s operating margins over
\ntime.<\/p>\n

<\/span><\/p>\n

SP base-case cash flow and capital-structure scenario<\/p>\n

<\/span><\/p>\n

Consol’s credit measures remain in line with our guidelines for the ratings.
\nIn the 12 months to Dec. 31, 2011, Consol’s Standard Poor’s-adjusted debt to
\nEBITDA was about 5.3x and adjusted funds from operations (FFO) to debt was
\nabout 11%. For both calculations we treated the interest-accruing shareholder
\nloan as debt.<\/p>\n

<\/span><\/p>\n

We anticipate that metrics will continue to improve now that the new plant is
\noperational and generating cash flows. In our view, Consol will continue to
\ngenerate sufficient FFO (after cash interest payments) to more than cover
\nmaintenance capex during fiscal years 2012 and 2013. Our base-case scenario
\nassumes capex of South African rand (ZAR) 600 million in fiscal 2012, and
\nabout ZAR500 million in fiscal 2013, as well as a working capital outflow of
\nabout ZAR300 million in fiscal 2012 and ZAR150 million in fiscal 2013.<\/p>\n

<\/span><\/p>\n

Liquidity<\/p>\n

<\/span><\/p>\n

We assess Consol’s liquidity as “adequate” under our criteria. We anticipate
\nthat liquidity sources will exceed uses by more than 1.2x in fiscal years 2012
\nand 2013. Consol’s debt maturity profile includes bullet repayments of medium-
\nto long-term debt.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

SP base-case operating scenario We anticipate that Consol will achieve high-single-digit revenue growth in the fiscal year ending June 30, 2012, largely as a result of selling-price increases and fairly flat volumes. We forecast that volume trends will improve somewhat in fiscal 2013. We base our assumptions on our opinion that growth in demand for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-10227","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=10227"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10227\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=10227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=10227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=10227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}