Barloworld profit up on after-market sales

Johannesburg - Barloworld [JSE:BAW] reported a rise of 16% in half-year profit on Monday as after-market sales helped the industrial group overcome weak demand for its heavy equipment from the mining industry.

Barloworld, the biggest dealer of Caterpillar mining trucks in southern Africa, said headline earnings per share (EPS) totalled 367 cents in the six months to March-end compared with 316c a year earlier.

Headline EPS, the main profit measure in South Africa, strips out certain one-off items.

Barloworld, a barometer for the health of the region's vast mining industry, is struggling to sell new earth-moving mining equipment as the industry scales back on capital expenditure due to faltering metal prices and strikes.

Overall, business was underpinned by strength in after-market sales, which include parts and services for equipment previously purchases by customers.

Sales increased 3% to R30bn.

"While trading conditions are expected to remain challenging in the second half, we will continue our focus on driving operational efficiencies and tight cost control," CEO Clive Thompson said in a statement.

READ: Barloworld posts profit on after-market sales