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Johannesburg - Industrial brands group Barloworld on Monday reported diluted headline earnings per share for continuing operations of 340c for the six months ended March, up 104% from 166.3 cents a year ago.
HEPS from continuing operations were up 105% to 345.2c.
Operating profit increased 30% to R1.279bn and revenue from
continuing operations rose by 8% to R21.7bn.
The growth in earnings was driven by a strong operating performance and the fact that last year's earnings included a charge for secondary tax on companies of R125m on the special dividend paid in April 2007, the group said.
An interim dividend of 100c per share was declared.
CEO Clive Thomson said the strong earnings were driven by the equipment division in southern Africa, which continued its growth trajectory given robust demand from the mining and construction sectors.
The equipment division reported operating profits up by 41% to R864m, driven by strong revenue growth coupled with improved margins in South Africa, Angola and Zambia.
In Spain, housing construction slowed, however public works activity was affected to a lesser extent. Siberia continued with strong revenue and profit growth.
Good growth in southern Africa
The automotive retail business experienced difficult trading conditions in South Africa where a sharp drop in new vehicle sales and lower margins resulted in reduced profits. The turnaround in the Australian business was cemented by a further rise in profits.
Results from car rental operations in southern Africa were satisfactory but trading conditions were difficult in Scandinavia in the low volume winter months.
In the handling division, good growth in southern Africa was tempered by the slowdown in the US economy. The UK handling business was flat, while Belgium and Holland showed good growth.
The logistics division continued to grow with profits rising by 71% in southern Africa.
Thomson said the strategic actions announced last year to refocus the group were completed in the first quarter. The sale of the Laboratory business was concluded in November and the shares in Freeworld Coatings were listed and unbundled to shareholders in December 2007.
"Our BEE transaction will be finalised in the short term and we look forward to the benefits it will bring to the company, our employees, and our empowerment partners," he said.
Looking ahead, Thomson added that the group's operating performance is expected to remain strong, driven by the equipment business in southern Africa.
- I-Net Bridge