Barloworld maintained its interim dividend at R1.15 per share despite headline earnings per share declining 9% to R3.35.
Barloworld, which represents the Avis brand in various countries, said its automotive division contributed 46% of the group's revenue. This division is split into motor trading, which grew sales by 4.6% to R10.3bn; car rental, where sales rose 7% to R2.85bn; and Avis Fleet - which is separate from car rental - where sales fell 3% to R1.6bn.
Equipment sales contributed 43% of the group's revenue. Russian equipment sales rocketed 58% to R2.35bn, European sales were up 21% to R2.25bn while in its home market sales declined 6.9% to R9.24bn.
Measured in dollars, its Russian sales growth was 22% to $157.9m. Its Russian "firm order book" at March was $47.8m, up on the September level of $27.7m, with open-cast gold mining projects driving the growth. "The book also includes an order for our first high wall mining machine in Russia for the coal industry," Barloworld CEO Clive Thomson said in the results statement.
In Europe, sales growth was due to rand depreciation as revenue remained flat at €138.2m. "Following a solid performance in the first quarter, activity levels in Spain have softened as a result of the political impasse arising from the inconclusive results of the general election held in December," Thomson said.
Barloworld's associate in the Katanga province of the Democratic Republic of Congo incurred a loss of R27m in the interim period from the matching period's R110m. This was mainly as a result of a bad debt provision as well as the temporary suspension of mining activities at one of its largest customers from December.
Mining operations at this customer were further disrupted by a slope failure in March, with resumption of mining activities now expected in the second half of Barloworld's financial year, Monday's interim results statement said.
Source: BDpro
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