Barloworld’s profit up by 27%

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By Ventures Africa

South African industrial group Barloworld full-year profit rose by 27 percent following its acquisition of Caterpillar’s Bucyrus distribution and support business and a from its logistics unit, the company said.

Revenue climbed 11 percent to R65.1 billion ($6.4 billion) from R58.5 billion ($5.7 billion) the previous year and operating profit increased 18 percent to R3.5 billion (345 million) from R2.9 billion (286 million).

The group’s diluted headline earnings per share EPS (SA primary measure of profit) climbed to 856 cents in the year to end-September, from 675 cents last year, according to a Reuters report.

“The newly acquired Bucyrus businesses performed in line with expectation and offset revenue declines in the traditional Caterpillar business on the back of a slowdown in mining capital expenditure,” said Barloworld’s , Clive Thomson.

Barloworld, the biggest Caterpillar equipment dealer in Southern Africa, last year July paid $165 million to buyout Caterpillar’s Bucyrus business – whose products include trucks and loaders used in mining.

Outlook for and for the region was showing renewed optimism, driven by proposed projects in transport infrastructure, power and mining, the company said.