NEWS ANALYSIS: Diversified companies show how to cope in adverse times
A LACKLUSTRE economy, low commodity prices and high electricity costs pushed foreign direct investment (FDI) in SA down 69% to $1.8bn in 2015, the latest UN Conference on Trade and Development world investment report shows. Add dismal first-quarter 2016 job data from Statistics SA, and the International Monetary Fund’s (IMF’s) forecast of 0.1% growth this year, and Treasury’s claim the economy is not as sick as the IMF suggests, rings a bit hollow.But amid ructions such as the minerals commodities rout, regional drought and Brexit, not all industry sectors and companies respond equally. Sectorally and geographically diversified companies appear better equipped to handle adversity.The performance of Barloworld’s Russian equipment business, which serves mining and forestry interests in remote regions of the country, was the highlight of its results in the six months to March."While trading conditions remain challenging in certain of our businesses, the ... diversity of the group’s ope...
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