(Alliance News) - South African industrial equipment, automotive services and logistics firm Barloworld Ltd said Thursday it will adopt additional measures to save costs in a market environment that will continue to be difficult.
Non-executive directors will have their fees reduced by 25% for three months starting from May 1, while contributions to the retirement funds will be suspended for up to 12 months, and a 12-month remuneration sacrifice plan has been effected for all employees.
Operationally, Barloworld said the environment is expected to remain weak and volatile in the near term, with significantly lower activity levels in the Automotive division. In addition, activity levels in the Equipment and Logistics division are low, but have been improving as customers adjust to operating under a lockdown environment.
Also, the release of Barloworld's interim results have been postponed to the end of June from May 18.
Looking ahead, Barloworld said it has a strong balance sheet and stable business platforms to weather the storm and be well positioned in the future recovery.
In addition, Barloworld's decision to sell 50% of the equity in Avis Fleet has been placed on hold, given the current market environment.
Barloworld will publish another voluntary business update at the end of May.
Shares in Barloworld were down 0.5% at ZAR64.70 on Thursday in Johannesburg.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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