JSE-listed diversified industrials firm, Barloworld, had posted solid results in the year to September this year. This was regardless of having to contend with tough economic conditions and geopolitical uncertainty, Clive Thomson, said on Monday.
Revenue from continuing operations gained 4 percent to R62.1 billion ($5.5 billion) while operating profit surged 16 percent to R3 830 million ($). This reflected improvements in operating efficiencies and disciplined cost control as the operating margin increased from 5.6 percent to 6.2 percent. Headline earnings a share from continuing operations soared 10 percent to 857 SA cents compared to the restated 780 SA cents in 2013.
“Post year end we concluded the acquisition of a fleet services business in Tanzania which establishes a presence in East Africa to complement the West African presence we are building in Ghana,” Thomson said.
“Our motor retail business in Australia was disposed of for R1.3 billion ($117.1m) generating a profit of R374 million ($33.7m). This will facilitate the redeployment of capital over time into businesses generating higher financial returns,” he added.
Within logistics the company made an acquisition in an extra heavy abnormal transport business which has synergies with its equipment operations.
The company also diversified the Barloworld Transport business into the sugar cane sector and organically established and secured the necessary skills to grow in the mobile crane segment.
Its loss-making Far East logistics airfreight business was disposed of in November 2013. The outlook for construction in southern Africa remains positive with a number of projects in Angola, Namibia and Mozambique.
In Spain the outlook for improved economic growth in 2015 has been reduced by weakening external demand particularly from other European markets.
In addition to the worldwide slowdown in commodity demand the Russian economy has weakened following the imposition of sanctions by the US and EU, the collapse in the oil price and the related sharp decline in the value of the rouble. The current view is that the Russian economy is unlikely to show positive growth in 2015.
