Vehicles and Russia a boon to Barloworld
Revenue rises 2% ‘in challenging trading conditions’
Barloworld pushed revenue up 2% to R32.5bn and operating profit up 5% to R1.8bn in the six months to March 2017. Headline earnings per share rose 9%, the same percentage as the interim dividend, as cash generated from operations halved to R929m from R1.8bn in the same period previously. The group says it produced a "pleasing overall result in challenging trading conditions". Despite tough logistics and automotive markets, the automotive division achieved a record result with all segments showing positive growth. The division generated revenue of R16.3bn — 11% ahead of last year. Divisional operating profit of R863m was 14% up, with an operating margin of 5.3% compared with 5.1% in 2016. "Logistics performance was below the prior year due to the weakening trading conditions," CEO Dominic Sewela said on Monday. He took over the reins of the group in February, replacing Clive Thomson.
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