Barloworld beats earnings forecasts
Johannesburg - Industrial group Barloworld [JSE:BAW] reported a 46% rise in full-year profit on Monday, slightly beating market estimates, on buoyant demand in southern Africa and Russia.
Barloworld, the biggest dealer of Caterpillar earth-moving equipment in southern Africa, said headline earnings per share totalled 675 cents in the year to end-September, above a 674c estimate in a Reuters poll of 10 analysts. It reported 461c a year earlier.
Headline EPS, the main measure of profit in South Africa, strips out certain one-off items.
The company, which also operates in Russia, Iberia and several African countries such as coal and gas-rich Mozambique, said its Russian business delivered a strong performance, although its Iberian unit suffered due to an economic slowdown in Spain.
Demand for industrial equipment has increased in southern Africa countries such as Mozambique, where enough gas to supply Germany, Britain, France and Italy for 13 years was discovered recently.
But the company said a spate of wildcat strikes that slashed production in South African platinum and gold mining industry was likely to hit demand.
"Overall we expect reduced mining deliveries into 2013 although there are some signs of a modest improvement in construction activity and aftermarket revenues should hold up well," the company said.