4 Nov 2011 07:33
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 were ahead of expectation in the second half and the group has delivered a strong performance for the 2011 financial year. Good growth, driven mainly by the mining sector, led to significantly higher profits in Equipment southern Africa. The Russian Equipment business, the remaining 50% of which was acquired effective 1 October 2010, also delivered an excellent result. Automotive and Logistics produced a pleasing performance in a competitive trading environment, notwithstanding the FIFA World Cup benefit to the 2010 results. Internationally, the Handling division showed a good turnaround from the prior year, while trading conditions in Equipment Iberia remain very difficult. Finance costs were well controlled and we had a strong performance from our joint ventures.
Headline earnings per share (HEPS) from continuing operations are expected to be 115% to 125% higher than the 211.5 cents reported in financial year 2010. Group HEPS are expected to be 165% to 175% higher than the 170.9 cents reported in 2010, which included the Scandinavian car rental business as a discontinued operation.
Basic earnings per share (including both continuing and discontinued operations) are expected to be between 460 cents and 510 cents compared to a loss of 3 cents in FY2010.
Operating cash generation has been strong across the group, which resulted in a further strengthening of our group financial position with a reduction of net debt at September 2011 compared to the prior year. Further progress was made in extending the group's debt maturity profile and to reduce the reliance on short term bank funding. Long-term debt raised during the year included three corporate bonds totalling R1 234 million. These funds were utilised to repay the outstanding balance in respect of the existing corporate bond BAW1 (R1 270 million) which matured in July 2011.
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 2011 on 14 November 2011.
Sandton Sponsor:
4 November 2011 J.P. Morgan Equities Ltd.
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