Barloworld full year profit jumps on mining growth

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JOHANNESBURG – South Africa’s Barloworld Ltd, a dealer for Caterpillar Inc, said on Monday its full-year profit jumped 18 percent on mining revenue growth from its equipment business.

The company, which also has automotive and logistics operations, said robust mining activity boosted the performance of their equipment business in Russia and South Africa.

Operating revenue for the Russia equipment business soared 57 percent to $606 million for the full year ended September, while revenues from the South African equipment unit rose 8.1 percent to 19.8 billion rand ($1.41 billion).

The revenues from Democratic Republic of Congo grew to 251 million rand, buoyed by higher commodity prices and production.

However, the automotive division of the company took a hit from the closure of five dealerships and reported a revenue fall of 5.6 percent.

Barloworld expects sales of luxury vehicles in its biggest market South Africa to remain under pressure in 2019 as consumers grapple with a weaker rand and rising oil prices.

“We expect industry vehicle sales in 2019 to be flat or slightly down on the current year with Rand depreciation adding further pressure to the premium segment,” the company said in a statement.

Diluted headline earnings per share (HEPS) from continuing operations for the full year ended September came in at 1,150.9 cents per share, compared to 974.5 cents per share in the year-ago period.

The company has issued a final dividend of 462 cents for the year.

Barloworld finalised the sale of its underperforming Iberian equipment business to privately-owned Italian group Tesa S.p.A. for 2.5 billion rand following a strategic review. (Reuters)