South Africa’s Barloworld, a dealer for Caterpillar Inc and other industrial brands, reported a 14% rise in first-half earnings on Monday as a pick-up in mining activity spurred sales of heavy equipment.

The biggest revenue increase came from its equipment businesses in Southern Africa, its biggest market, led by mining machine sales in South Africa, Mozambique and Zambia, the company said. Its equipment business in Russia also continued to benefit from greenfield and brownfield mining projects.

“The improving global economy and current favourable commodity prices have resulted in improved mining output in our region,” Chief Executive Dominic Sewela said in a statement.

“This has increased demand from both mining companies and contract miners for replacement machines and to a lesser extent machines for expansion projects,” he continued.

The group’s order book for its Equipment Southern Africa business stood at R2.9 billion ($227 million) at the end of March, in line with its level in September 2017, but up from R1.9 billion a year earlier.

Barloworld carried out a strategic review of its businesses last year to address underperforming businesses and optimise returns from its existing portfolio. Last month it announced it would sell its underperforming Iberian equipment business to privately owned Italian group Tesa S.p.A.

 

 

 

 

-Reuters

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