| Thu 5 May 2011, 17:00 | | 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)
(Share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
("Barloworld or the Company")
TRADING STATEMENT
The group has had a strong performance for the first six months to 31 March
2011, with Headline earnings per share from continuing operations expected to
be between 130 and 156 cents per share (2010: 41 cents).
Trading results in Equipment southern Africa and Russia for the six months to
March 2011 have improved significantly, driven mainly by demand in the mining
sector. Construction in South Africa is expected to be subdued for the rest
of the year. In Iberia, trading conditions remain weak and further
restructuring charges were incurred to realign the cost base with prevailing
activity levels.
In the Automotive division fleet services, motor retail in southern Africa
and Australia continued to trade well. Car rental has been impacted by
stagnant volumes, lower rate per day and a return to normalised used vehicle
margins.
The Handling division has shown a good year on year improvement in results
due to improving activity levels and efficiencies, while logistics is
marginally down on the prior period due to lower volumes from customers
linked to the construction sector and weak margins in the sea air business.
All regulatory approvals have been received in respect of the acquisition of
the remaining 50% in the Russian equipment business and trading to date has
been ahead of our expectation.
The repayment of the outstanding NOK 150 million (R174 million) in respect of
the disposal of the Scandinavian car rental business was received in full in
the period bringing the transaction to a successful conclusion.
The disposal of our logistics African and Asian non-corporate trader business
has been successfully executed.
Lower borrowings since the first half of 2010 and reduced interest rates have
contributed to lower net finance charges in the six months.
Group headline earnings per share for the six months to 31 March 2011, from
both continuing and discontinued operations are expected to be between 130
cents and 156 cents per share (2010: 7 cents) due to the improved trading
conditions and the disposal of the Scandinavian car rental business last
year.
Group basic earnings per share for the six months to March 2011 are expected
to be a profit of between 155 cents and 185 cents compared to a loss of 65
cents in the prior year. This includes an exceptional gain of R63 million
arising on the Russian acquisition.
Increased working capital to meet growing demand in Equipment southern Africa
and Russia, coupled with the purchase consideration paid for the additional
50% shareholding in Equipment Russia has led to a net cash outflow for the
period, in line with our expectations.
Barloworld Limited expects to announce its results for the six months to
31 March 2011 on 17 May 2011.
This financial information has not been reviewed or reported on by
Barloworld`s auditors.
Enquiries
Barloworld Limited: Jacey de Gidts 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
Sponsor: J.P. Morgan Equities Limited
Date: 05/05/2011 17:00:01 Produced by the JSE SENS Department.
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