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Johannesburg - Barloworld [JSE:BAW] reported a 39% decline in full-year profit as the economic slowdown forced its mainstay industrial consumers to scale back on spending.
Barloworld, which leases and sells automobiles and earth-moving equipment, said on Wednesday headline earnings per share totalled 212 cents in the year to end-September, compared with 351 cents a year ago.
Barloworld, which represents Caterpillar Inc and other global brands, also said it would buy the remaining 50% of a Caterpillar dealership joint venture in Russia for $52m.
Barloworld said revenue fell nearly 10% to R40.8bn.
The company has been squeezed as construction boom from the 2010 soccer World Cup ended, and due to the weak economic outlook for both South Africa and Europe, where it also has operations.
But a recovery in new auto sales and an upswing in spending by miners have helped ease the pain, inspiring the company to be more optimistic about the 2011 fiscal year. "We are well placed to pursue attractive growth opportunities that will improve financial returns," Barloworld said, adding order books have started to rebuild across most businesses.
Shares of the company are up about 10% so far this year, underperforming a 15% rise in Johannesburg's All-share index.
Barloworld, which leases and sells automobiles and earth-moving equipment, said on Wednesday headline earnings per share totalled 212 cents in the year to end-September, compared with 351 cents a year ago.
Barloworld, which represents Caterpillar Inc and other global brands, also said it would buy the remaining 50% of a Caterpillar dealership joint venture in Russia for $52m.
Barloworld said revenue fell nearly 10% to R40.8bn.
The company has been squeezed as construction boom from the 2010 soccer World Cup ended, and due to the weak economic outlook for both South Africa and Europe, where it also has operations.
But a recovery in new auto sales and an upswing in spending by miners have helped ease the pain, inspiring the company to be more optimistic about the 2011 fiscal year. "We are well placed to pursue attractive growth opportunities that will improve financial returns," Barloworld said, adding order books have started to rebuild across most businesses.
Shares of the company are up about 10% so far this year, underperforming a 15% rise in Johannesburg's All-share index.
