Barloworld hikes dividend as equipment sales boost profits
Operating profits fell due to once-off charges, including costs related to the implementation of its Khula Sizwe BEE deal
Barloworld, which distributes Caterpillar equipment and Volkswagen vehicles, has hiked its interim dividend 13.8% after earnings grew thanks to better equipment sales in Southern Africa. The group’s results for the six months to end-March were pleasing considering that trading conditions were tough, CEO Dominic Sewela said. Revenue declined 1.6% to R30.4bn, even though the equipment business in Southern Africa grew sales by 15.7% to R10bn. “This was driven by increased mining, construction and service activity in SA, together with increased machine and after-market sales in Mozambique and Zambia,” Barloworld said. Normalised headline earnings per share, a metric that excludes certain once-off charges, rose 14.1%. The group raised its interim dividend per share by 13.8% to R1.65. Barloworld said operating profits fell 4% to R1.9bn due to once-off charges, including costs related to the implementation of its Khula Sizwe BEE transaction. Meanwhile, the group said its equipment order ...
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