Wrap Text
Trading Update
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income Tax Registration number 9000/051/71/5)
(JSE Share code: BAW) and (NSX share code: BWL)
(Ordinary share ISIN: ZAE000026639)
(Preference Share code: BAWP)
(Preference share ISIN: ZAE000026647)(“Barloworld” or “the Company”)
Trading Update
The group has produced a steady performance in the first quarter of the 2015 financial year
with most businesses trading above or in line with the prior comparable period.
Equipment and Handling
Equipment southern Africa delivered a pleasing result for the quarter despite declining
commodity prices and reduced mining capex. Improved performance in Mozambique as
well as strong activity in the Extended Mining Product Range in Zambia and Namibia, have
contributed positively to the result. Aftermarket activity has remained solid and ahead of
the prior year. The December firm order book for southern Africa was marginally down on
September last year.
In Russia the combination of the oil price decline, a weak rouble and the impact of sanctions
has adversely impacted economic growth and created a complex and challenging operating
environment. As a result trading in the first quarter is well below that of the prior period.
While remaining at low levels, the December firm order book is up on September last year
following certain contract awards.
The Iberian business has traded at close to a breakeven level in the first quarter following
the action taken last year to lower the cost base. The December firm order book is in line
with September levels.
The Handling and the Agriculture businesses are trading broadly in line with the prior
period.
There are currently no changes to the 2015 revenue outlook ranges provided for the
Equipment and Handling businesses at the time of releasing our year end results. However,
there is some increased risk in relation to the Russia performance as a result of economic
developments over the past few months.
Automotive and Logistics
The Automotive and Logistics division performance has been solid in the first quarter driven
mainly by Motor Retail and Car Rental. Rental days and rate per day in car rental are ahead
of last year contributing to a good trading performance, while Fleet Services is in line with
the prior period. Logistics has faced a weaker trading environment in the first quarter but
some notable supply chain management contract wins are likely to contribute to an
improved performance over the balance of the year.
There are no changes to the 2015 revenue outlook ranges provided for the Automotive and
Logistics division at the time of releasing our year end results.
Working capital and Funding
In line with the past trends the group has seen an increase in working capital to fund
inventory in the first quarter. This has contributed to higher net debt that is expected to
decline over the second six months of the financial year.
Directorate
Mr Martin Laubscher, Chief Executive Officer of the Automotive and Logistics division, has
decided due to health-related reasons to retire early from the company after 28 years’
service, effective end February 2015. Consequently, he will not be standing for re-election
as a director of Barloworld Limited at the Company’s annual general meeting on 4 February
2015.
Mr Keith Rankin, the existing Chief Executive of Barloworld Automotive, and Mr Steve Ford,
the existing Chief Executive of Barloworld Logistics, will continue to run these businesses
and will report to the group chief executive Mr Clive Thomson.
Mr Laubscher has agreed to make himself available during his retirement to assist in
finalising certain strategic projects and to ensure a seamless leadership transition. We
would like to thank him for his outstanding service and contribution to Barloworld and the
automotive industry over the past 28 years and wish him and his family well for the future.
Sandton Sponsor:
4 February 2015 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, digital 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, Hyster, Avis, Audi, BMW,
Ford, General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz, Toyota, Volkswagen,
Challenger, 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 24 countries around the world with approximately 75% 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, 2000)
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, FNO Edozien^, AGK Hamilton*, A
Landia~, SS Mkhabela, B Ngonyama, SS Ntsaluba, SB Pfeiffer•, OI Shongwe
Executive: CB Thomson (Chief Executive), PJ Blackbeard, PJ Bulterman, M Laubscher, DM
Sewela, DG Wilson
*British ~German •American ^Nigerian
Group company secretary: Lerato Manaka
Enquiries: Barloworld Limited: Lethiwe Motloung
Tel +27 11 445 1000
E-mail: invest@barloworld.com
Instinctif: Morne Reinders, Tel +27 11 447 3030
E-mail morne.reinders@instinctif.com
For background information visit www.barloworld.com
Date: 04/02/2015 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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