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Trading update
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
Trading for the first quarter of the 2013 financial year has shown solid progress across most
business units.
Equipment
In Equipment southern Africa, trading outside of South Africa is positive on the back of
continued mining and infrastructure spending. The challenges being experienced in the
mining sector in South Africa have led to some slowdown in the traditional Cat business,
particularly in contract mining. However, this has been made up through incremental
revenues from the recently acquired Extended Mining Product Range (EMPR) ( Bucyrus
business).
The combined firm order book for southern Africa at December of R5.7 billion is 7.5% up on
September 2012. The EMPR order book was boosted by a substantial order from Swakop
Uranium (delivery in 2014 and 2015) which has more than compensated for the reduction in
the traditional Cat firm order book.
Trading in Russia has continued to be positive and the firm order book at December ($96
million) is up on September levels and remains dominated by mining orders. The Bucyrus
Russia distribution and support business was acquired in December and should contribute
positively over the remainder of the financial year.
While economic conditions in Iberia remain challenging, the tough restructuring measures
implemented over the past few years have significantly reduced the cost base. In
addition the current period does not include the sizeable restructure costs incurred in the
prior period.
Automotive and Logistics
The Automotive and Logistics division is trading ahead of the prior year.
Car rental volumes are improving while rates remain stable. Our Motor retail operations in
southern Africa experienced higher volumes and achieved improved overall margins, with
our Australian operations performing in line with the prior year. Fleet Services continues to
trade well.
The Logistics operations in southern Africa are performing ahead of the prior year despite
the effects of the transport sector strikes in October. The international businesses remain
stable with continued pressure on volumes and freight rates.
Handling
The Handling division results now exclude the US and UK operations which were sold last
year. Trading in the remaining European and Southern African operations has been slightly
weaker than the prior period.
Balance sheet and working capital
Working capital has increased in the period mainly as a result of inventory deliveries from
our principals, contributing to higher net debt levels. We anticipate working capital to remain
high to March in advance of strong machine deliveries in the second half. Net debt levels are
expected to remain within our target ranges at the half year and full year.
Corporate Activity
The US$50 million acquisition of the Bucyrus Russian business closed on 3 December 2012
and the minority shareholding in logistics Africa was acquired for R125 million on 1 October
2012.
Sandton Sponsor:
23 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 (earthmoving and power systems), Automotive and Logistics (car
rental, motor retail, fleet services, used vehicles and disposal solutions, logistics
management and supply chain optimisation) and Handling (materials handling and
agriculture). 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, Hyster, Avis, Audi, BMW, Ford, General Motors, Mazda, Mercedes-Benz,
Toyota, Volkswagen, Massey Ferguson 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 27 countries around the world with approximately 65% of our nineteen
thousand 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*, 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 #American
Company secretary: Bethuel Ngwenya
Tel +27 11 445 1000
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
Date: 23/01/2013 12:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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