TRANSPORT INDUSTRY
Cargo Carriers profit plunges after losses at three of four units
Profit plunged at transport specialist Cargo Carriers in the year to February, with three of its four operating divisions running at losses. Cargo, which has Bidvest subsidiary BB Investments as a 14.3% shareholder, reported profit from continuing operations dropping from R41m to just R4m. Operating margins were smashed from 7% to 0.69%. CEO Murray Bolton said the past financial year was one of the more economically challenging for the business. He reported that difficult operating conditions in the mining, steel, sugar and cement sectors caused extreme pressure on margins as customers actively sought rate reductions — often with lower utilisation. "This situation was exacerbated by the fragmented and highly competitive landscape, with low barriers to entry." A segmental report showed the fuel and powders segment posting an operating loss of R2.65m off revenue of R234m, the agriculture segment showing a loss of R7m from revenue of R25m and the supply chain operations showing a loss ...
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