Barloworld posts lower half-year profit

Johannesburg - Barloworld [JSE:BAW] reported a 9% fall in half-year profit on Monday as a slowdown in mining activity hurt its equipment business in southern Africa.

Barloworld, the largest dealer of Caterpillar mining trucks in southern Africa, said headline earnings per share (Heps) fell to 335 cents in the six months to end-March compared with 367c a year earlier.

While the current order book for equipment in southern Africa is down on September 2015, Barloworld said it sees mining project opportunities in the pipeline that could boost revenues in 2017 and 2018.

"The recent pick-up in commodity prices has to some extent improved the outlook for marginal mines and has reduced the risk of production curtailment, with the related negative impact on aftermarket demand," the company said in a statement.