| Fri 5 Nov 2010, 11:00 | | BAW - Barloworld Limited - Trading statement |
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BAW
BAW
BAW - Barloworld Limited - Trading statement
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(ISIN: ZAE000026639)
("Barloworld or the Company")
TRADING STATEMENT
Trading results improved significantly in the second half of this financial
year compared with the first half. Increased demand, mainly in the southern
African mining sector, led to higher profits in Equipment southern Africa in
the six months to September 2010. Automotive continued to produce good
results in a competitive trading environment, notwithstanding lower used
vehicle profitability. Trading in our international operations remained
difficult but results were better than the first half as the restructuring
activities yielded cost reductions. Further savings were made in net finance
charges, as borrowings declined on the back of strong cash flows, while
interest rates remained low.
Following the drop in profits in the first half of the year, results for the
twelve months to 30 September 2010 are expected to be lower than those for
last year.
Operating profits are expected to be 25% to 35% lower than last year. Group
headline earnings per share (HEPS) and headline earnings per share from
continuing operations are expected to be 35% to 45% lower than financial year
2009.
The decline in HEPS is mainly attributable to the lower operating profit, a
higher average taxation rate and reduced contributions from associates.
Basic earnings per share (including both continuing and discontinued
operations) are expected to be between breakeven and a loss of 10 cents
compared to a profit of 322 cents in FY 2009. This is mainly due to the lower
HEPS, the loss incurred on the disposal of the Scandinavian Car Rental
business, as well as the Logistics goodwill impairment booked in the first
half of the year.
Operating cash generation has been strong across the group, resulting in a
further strengthening of the group balance sheet. The disposal of the
Scandinavian business in July reduced borrowings by almost R1 billion. In
September, new long-term bonds were issued in the South African corporate debt
market, raising R1 billion. The proceeds were used to repay short-term debt.
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 2010 on 17 November 2010.
Sandton Sponsor:
5th November 2010 J.P. Morgan Equities Ltd.
Enquiries:
Barloworld Limited:
Sibani Mngomezulu,
Tel +27 11 445 1000
E-mail invest@barloworld.com
College Hill:
Jacques de Bie,
Tel +27 11 447 3030
E-mail Jacques.deBie@collegehill.co.za
For background information visit www.barloworld.com
Date: 05/11/2010 11:00:01 Produced by the JSE SENS Department.
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