Barloworld headline earnings up

JOHANNESBURG – South African industrial group Barloworld Ltd lifted annual headline earnings per share by 32 per cent to 1 171 cents and said on Monday it aimed to double its value by 2010.

Barloworld said in a statement on its Web site that stronger equipment and cement sales in southern Africa as well as positive fair-value adjustments on forward cover contracts due to the weaker rand boosted its profits to end-September. Shares in the group rose 1,39 per cent to 141,95 rand by 0902 GMT, outperforming a 0,60 per cent increase in the Top-40 index.Barloworld had expected to report a 25 to 35 per cent increase in EPS and in headline EPS in the year.Headline EPS is the key profit measure for South African firms and excludes non-trading, capital and certain extraordinary items.Operating profit rose 21 per cent to 4,133 billion rand, and the group declared a total dividend of 600 cents per share, up 32 per cent on the previous year.Barloworld Chief Executive Officer Tony Phillips said higher capital investment in the southern African economies had led to strong demand for cement, vehicles and paint coatings, while the equipment unit had been buoyed by more mining and construction.”We have a favourable outlook as the southern African capital investment cycle is gaining impetus …overall we expect to report another year of sustained progress in 2007,” he said.Barloworld, which holds a majority stake in Pretoria Portland Cement (PPC), represents international brands such as Caterpillar earth-moving machines, Avis car hire, and businesses in the US, Europe and Australia.The group is the world’s largest independent lift truck dealer and also has capital equipment distributors, auto dealerships and financial service firms.Nampa-ReutersShares in the group rose 1,39 per cent to 141,95 rand by 0902 GMT, outperforming a 0,60 per cent increase in the Top-40 index.Barloworld had expected to report a 25 to 35 per cent increase in EPS and in headline EPS in the year.Headline EPS is the key profit measure for South African firms and excludes non-trading, capital and certain extraordinary items.Operating profit rose 21 per cent to 4,133 billion rand, and the group declared a total dividend of 600 cents per share, up 32 per cent on the previous year.Barloworld Chief Executive Officer Tony Phillips said higher capital investment in the southern African economies had led to strong demand for cement, vehicles and paint coatings, while the equipment unit had been buoyed by more mining and construction.”We have a favourable outlook as the southern African capital investment cycle is gaining impetus …overall we expect to report another year of sustained progress in 2007,” he said.Barloworld, which holds a majority stake in Pretoria Portland Cement (PPC), represents international brands such as Caterpillar earth-moving machines, Avis car hire, and businesses in the US, Europe and Australia.The group is the world’s largest independent lift truck dealer and also has capital equipment distributors, auto dealerships and financial service firms.Nampa-Reuters