| Tue 4 Nov 2008, 16:03 | | BAW/BAWP - Barloworld Limited - Trading statement |
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BAW BAWP
BAW
BAW/BAWP - Barloworld Limited - Trading statement
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(JSE Ordinary Share code: BAW)
(JSE ISIN: ZAE000026639)
(JSE Preference Share code: BAWP)
(JSE ISIN: ZAE000026647)
("Barloworld or the Company")
TRADING STATEMENT
Trading update
The Equipment southern Africa business has continued to deliver a strong
operating performance on the back of robust demand in the mining and
construction sectors. Equipment Iberia has felt the effects of the
significant construction downturn in the second half of the financial year,
while Equipment Siberia has continued to trade well.
In the Automotive division, Motor retail southern Africa has been impacted by
tough trading conditions, while car rental has seen reduced rental day
growth, lower fleet utilisation and reduced used vehicle profits. Avis Fleet
Services and Motor Australia produced solid results.
Within the Handling division, the businesses in Belgium and the Netherlands
performed well as did the handling and agriculture operations in South
Africa. However, this was offset by weaker performances in the USA and UK due
to the worsening economic environments.
The Logistics division has performed well, mainly due to organic growth in
southern Africa.
Overall trading profit for the group is expected to show strong growth on the
prior year, driven by the Equipment division.
Growth in headline earnings per share from continuing operations will be
impacted by a number of largely once-off items in the current and prior
financial years. These include:
1. In the financial year ended 30 September 2008, the implementation of
the recently approved black economic empowerment transaction; which is
expected to result in a non-cash IFRS 2 charge of R 296 million after tax
(145 cents per share) .
2. In the previous year a gain of R 294 million (145 cents per share) arose
from the initial marking to market of PPC shares held to service obligations
in respect of the share option scheme.
3. In the previous year a STC charge of R 125 million (62 cents per share)
was incurred in respect of the special dividend paid in April 2007.
As a consequence of the above items, headline earnings per share (HEPS) from
continuing operations is expected to be 5% to 15% lower than for the prior
year . Adjusting for the above items results in an expected increase in
normalised HEPS from continuing operations of 25% to 35% compared to last
year.
JSE reporting requirements
The group`s earnings inclusive of both continuing and discontinued operations
will not be comparable due to the unbundling of PPC and the disposal of
Melles Griot in the second half of last year and the unbundling this
financial year of Freeworld Coatings and the disposal of the Laboratory
business. The results of these businesses will be disclosed as discontinued
operations in the group`s year end results.
In terms of Section 3.4 (b) of the JSE Requirements, reported earnings per
share and reported headline earnings per share (including both continuing and
discontinued operations) are expected to decline by 45% to 55% due to the
once-off items referred to above and the absence this year of the businesses
unbundled or sold which contributed substantially to last year`s earnings.
This financial information has not been reviewed or reported on by
Barloworld`s auditors.
Barloworld Limited expects to announce its results for the year to 30
September 2008 on 17 November 2008.
Sandton
4 November 2008
Sponsor:
J.P. Morgan Equities Ltd.
Date: 04/11/2008 16:03:41 Produced by the JSE SENS Department.
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