Barloworld released its interim results this morning, with a 10% increase in headline earnings, and a 71% spike in earnings per share, the share is however trading half a percent down on the day after a strong start this morning. Despite today’s moves, Barloworld is a strong stock acting as a heavy industry gauge in the region, gaining 22% on the year, with a current market cap of R26bn.
- Revenue up 5% to R29.9 billion
- Operating profit up 18% to R1 639 million
- Motor retail Australia disposal for R1.3 billion
- HEPS up 10% to 336 cents
- Interim dividend per share up 10% to 106 cents
- Basic EPS of 494 cents up 71%
Clive Thomson, CE of Barloworld, said, “The group delivered a sound performance in the first half with operating profits up 18% and headline earnings per
share increasing by 10%.
Our Equipment business in southern Africa delivered a good overall result despite the ongoing challenges in the mining sector. Revenues were bolstered by a strong performance from the Extended Mining Product Range (EMPR) and continued aftermarket growth. In Russia our business held up relatively well despite slowing economic growth and political uncertainty arising from the Ukraine crisis.
The Automotive and Logistics division traded strongly with all business units performing well ahead of the prior year. Our Australian motor retail operations were disposed in the period for R1.3 billion realising a profit of R370 million. This continues our strategic objective to redeploy capital into those businesses earning the highest financial returns.
Overall the group is expected to produce a solid result for the full year and is well placed to benefit once the global mining cycle moves into a recovery phase.”
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