Barloworld added 0.61% to close at R133 per share on Monday after the group released results for the year ended 30 September 2017. Company revenue from continuing operations came in at R62bn, mostly unchanged from the prior period’s R62.1bn. Operating profit from continuing operations stood at R4.1bn, with operating margin at 6.6%. This performance comes amid tough trading conditions. Overall, headline earnings per share from continuing operations increased by 16% to 975 cents, up from 841 cents a year ago. The board declared a final dividend of 265 cents, taking the full-year dividend to 390 cents. The outlook statement reads well and it is expected returns will improve in 2018.
It was a busy day on the exchange yesterday with a number of companies releasing results. Among them, Barloworld delivered solid interim numbers for the six months ended 31 March 2017. The group reported a 2% increase in revenue to R32.5bn, boosted by a strong performance in its Automotive and Logistics divisions, while its operating profit grew by 5% to stand at R1.849bn. Barloworld saw headline earnings per share increase by 9%, or 30 cents, to 365 cents, helped by an improved operating performance as well as reduced losses from associates. The board opted to declare an interim dividend of 125 cents, a 9% increase on the 115 cent dividend reported in the previous corresponding period.
Barloworld ended sharply lower on Monday, falling 6.79% to R65.62, following the release of its interim results for the 6 months ended 31 March 2016. In it, the group reported a 4% increase in revenue to R31.9bn, despite a challenging trading environment. Profit before exceptional items rose by 6% to R1.087bn, while operating profit for the period increase by 1% to R1.756bn. Overall, basic earnings per share rose by 4% to 368 cents, while headline earnings per share came in 9% lower at 335 cents per share. This decline was mainly attributable to significantly reduced equity earnings from the group’s associates following losses incurred in its joint venture in the DRC.
Barloworld ended sharply lower on Wednesday, down 5.99% as it moved to trade at R66.74, following a weak trading update for the first quarter of the 2016 financial year. In it, the group stated its geographic and industry diversity contributed to a stable overall performance despite difficult trading conditions. Nevertheless, the group warned that, amongst other things, trading in Angola had slowed due to a declining oil price and currency devaluations. In addition, a major customer in the DRC informed their business partners of a temporary suspension of mining activity which will materially impact the group’s income during the first half of the financial year.
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