29 Jan 2014 13:18
The following amendment has been made to the 'Trading Update' announcement released on 29th January at 10:30am under RNS No 7755Y.
In the "Funding" section a figure was referred to as a million when it should have read billion.
All other details remain unchanged.
The full amended text is shown below.
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income Tax Registration number 9000/051/71/5)
(Share code: BAW)
(Share ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
(Bond issuer code: BIBAW)
("Barloworld or the Company")
TRADING UPDATE
The first quarter of the 2014 financial year has delivered a solid group performance, with overall trading results ahead of the prior year.
Equipment and Handling
Equipment southern Africa delivered a strong result for the quarter despite the ongoing slowdown in the mining sector in southern Africa. Higher than planned activity in EMPR (Extended Mining Product Range) and an improved performance in Angola has contributed positively to the result. After sales revenue also reflected pleasing growth compared to the prior year. The firm order book for southern Africa at December 2013 remains in line with September 2013, with the EMPR orders continuing to represent the majority of the order book.
In Russia activity continues to be impacted by the slowdown in coal mining. The firm order book has reduced slightly from September following the machine deliveries to Polyus.
In Iberia activity remained subdued in the first quarter, however there are some early signs of improving economic conditions in Spain.
The Global Power business has continued to expand and is benefitting from good growth opportunities across all lines of business.
Barloworld Handling disposed of all the shares in its materials Handling business in the Netherlands in December 2013. The Agriculture business had a slow start to the year, while the Handling southern Africa business traded in line with expectations in the first quarter.
Automotive and Logistics
The Automotive and Logistics division has shown strong trading compared to the prior year across all the business segments.
Rental days in car rental improved strongly on last year contributing to a good trading performance. Following supply disruptions in Motor retail operations in southern Africa new vehicles sales were marginally down, whilst used volumes increased on prior year. The Australian motor retail operations performed in line with expectation. Fleet Services is trading well ahead of the prior year.
Logistics has benefited from the contribution of Manline Logistics, with the southern African operations ahead of the prior year. Overall the logistics business continued to show improvements as a result of operational efficiencies and the disposal of the loss-making freight forwarding business in the Far East.
Balance Sheet and Working capital
In line with the historical trend working capital increased in the first quarter due to inventory deliveries over the period. This has contributed to higher net debt levels, however, gearing is expected to remain within our target ranges at the half year and full year.
Funding
In December 2013 the company issued three senior unsecured notes under the South African Domestic Medium Term Note programme. In total R1.541 billion was raised of which R714 million matures in 2018 and R827 million in 2020. R1.069 billion of the total funds raised was priced based on floating rates. The funds raised will be used to finance growth and to improve the maturity profile of group debt.
Sandton Sponsor:
29 January 2013 J.P. Morgan Equities South Africa (Pty) Ltd.
About Barloworld
Barloworld is a distributor of leading international brands providing integrated rental, fleet management, product support and logistics solutions. The core divisions of the group comprise Equipment and Handling (earthmoving, power systems, materials handling and agriculture), Automotive and Logistics (car rental, motor retail, fleet services, used vehicles and disposal solutions, logistics management and supply chain optimisation). We offer flexible, value adding, integrated business solutions to our customers backed by leading global brands. The brands we represent on behalf of our principals include Caterpillar, Avis, Audi, BMW, Ford, General Motors, Mazda, Mercedes-Benz, Toyota, Volkswagen, Massey Ferguson, Hyster and others.
Barloworld has a proven track record of long-term relationships with global principals and customers. We have an ability to develop and grow businesses in multiple geographies including challenging territories with high growth prospects. One of our core competencies is an ability to leverage systems and best practices across our chosen business segments. As an organisation we are committed to sustainable development and playing a leading role in empowerment and transformation. The company was founded in 1902 and currently has operations in 25 countries around the world with approximately 70% of just over 19 600 employees in South Africa.
Corporate information
Registered office and business address
Barloworld Limited, 180 Katherine Street
PO Box 782248, Sandton, 2146, South Africa
Tel: +27 11 445 1000
Email: invest@barloworld.com
Transfer secretaries - South Africa
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th floor Rennie House, 19 Ameshoff Street, Braamfontein
(PO Box 4844, Johannesburg)
Tel: +27 11 630 0000
Registrars - United Kingdom
Equiniti Limited, Aspect House, Spencer Road
Lancing, West Sussex, BN99 6DA, England
Tel: +44 190 383 3381
Transfer secretaries - Namibia
Transfer Secretaries (Proprietary) Limited
(Registration number 93/713)
Shop 8, Kaiser Krone Centre, Post Street Mall
Windhoek, Namibia
(PO Box 2401, Windhoek, Namibia)
Tel: +264 61 227 647
Directors
Non-executive: DB Ntsebeza (Chairman), NP Dongwana, AGK Hamilton*, A Landia~, SS Mkhabela, B Ngonyama, SS Ntsaluba, TH Nyasulu, SB Pfeiffer•
Executive: CB Thomson (Chief Executive), PJ Blackbeard, PJ Bulterman, M Laubscher, OI Shongwe, DG Wilson
*British ~German •American
Group company secretary: Lerato Manaka
Enquiries: Barloworld Limited: Lethiwe Motloung
Tel +27 11 445 1000
E-mail invest@barloworld.com
College Hill: Amelia Soares, Tel +27 11 447 3030
E-mail amelia.soares@collegehill.co.za
For background information visit www.barloworld.com