The group produced a solid start to the 2017 financial year with the overall operating performance pleasingly up on the first quarter of last year.

Equipment and Handling
Equipment southern Africa first quarter operating performance was slightly improved. The firm order book at end January of R1.7 billion is well up on the September 2016 level of R1.3 billion and reflects increased activity in the mining and contract mining sectors as commodity prices continue to improve.

Our joint venture in the Katanga region of the Democratic Republic of Congo generated a profit in the first quarter which was well up on the prior year. Following an extended period of production curtailment one of our major mining customers has now indicated their intention to commence mobilisation of a portion of their mining fleet in the first calendar quarter of 2017. This is in anticipation of the commissioning of their new processing plant in the second half of 2017. The improved fleet utilization should benefit our aftermarket activity.

In Equipment Russia trading in the first quarter has continued positively. The firm order book at the end of January of USD56 million is well up on the September level of USD21 million and includes the recently concluded Bystrinsky transaction with Norilsk Nickel for twelve large mining trucks. In addition, the mining project pipeline is strong and has been boosted by some significant greenfields projects.

Activity in Equipment Iberia remains at low levels, with the business trading below the prior year in the first quarter. Order books at end January of Euro 36 million are ahead of the September level of Euro 26 million and we remain optimistic of a profitable result for the full year.

The Handling division generated an operating profit in the first quarter compared to a loss in the prior period driven by an improved performance in Agriculture SA. As previously announced on 17 November 2016, Barloworld has signed an agreement to dispose of our Barloworld Handling and Agriculture businesses in South Africa into a 50:50 joint venture with BayWa AG. This transaction, which is subject to certain regulatory approvals, is expected to be concluded by the end of February 2017.

Automotive and Logistics
The Automotive division produced a solid overall first quarter result amid a tough trading environment, with both revenue and operating profit well up on last year. Car Rental showed an improved performance through growth in both rental days and rate per day while Motor Trading benefited from the acquisitions in the previous year. Avis Fleet first quarter revenue and operating profit was well up on the prior period. The overall profit contribution from used vehicle disposals has remained strong. Logistics traded strongly ahead of last year due to the contribution of acquisitions and the impact of new contracts awarded within the supply chain and transport segments.

Working capital and Funding
In line with previous years, group working capital levels have shown some increase in the first quarter mainly in the automotive and logistics divisions but are expected to decline over the balance of the financial year.

Click here for original article

Barloworld Ltd. published this content on 08 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 08 February 2017 11:56:03 UTC.

Original documenthttps://www.profile.co.za/irsites/barlow2/senspopup.aspx?id=284621

Public permalinkhttp://www.publicnow.com/view/C37AEC92A09F3CE36A2F0CEB048A6CB0AE8F7DBA