Newsletter #350 (View other news stories)
Barloworld benefits from business boom
JOHANNESBURG, South Africa
Thursday, 6 Mar 2008
Barloworld’s equipment division recorded strong growth for financial year 2007, posting a 44% jump in revenue to ZAR16,755 million (USD2,117 million) and a 62% increase in operating profit to ZAR1,584 million (USD200 million).
Thuli Senosi from Barloworld Corporate Affairs says the unprecedented growth in South Africa’s construction business and the global mining boom have boosted the company’s results.
Global demand has resulted in extended lead times and Barloworld chairman Dumisa Ntsebeza said at the company AGM on 25 January that Barloworld is working with Caterpillar to meet delivery dates: "The order book remains high and we expect the strong performance to continue for this financial year."
In Iberia, Barloworld expects demand for construction equipment for infrastructure to balance the cooling off in the housing sector. Revenue for the Siberian business is growing while the Portuguese market saw a "slight improvement" with an increase in tenders awarded.
Barloworld Equipment supplies Caterpillar equipment to the mining, construction, marine, electrical power generation and other industries in southern Africa, Siberia, Spain, Portugal, Andorra and Sao Tomé and Principé. Customers in Portugal also have access to Mitsubishi forklifts.
Ntsebeza said the handling business in the US is slowing down, forklift sales in South Africa will be lower than in 2006 because of increased interest rates, but the UK and European businesses are showing steady profit growth.
Barloworld Handling supplies Hyster forklifts to south east US, Europe and South Africa. From October 2007, the division included the group’s agriculture business distributing the Massey Ferguson, Claas and Geringhoff brands in South Africa.
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