Barloworld Says Profit Rose, in Talks to Buy Bucyrus Rights

Nov. 14 (Bloomberg) -- Barloworld Ltd., the world’s largest trader of forklifts, reported an increase in full-year profit and said it’s in talks to buy distribution rights for mining equipment from Caterpillar Inc.

Net income rose to 1.08 billion rand ($136.9 million) in the year through September from 44 million rand a year earlier, the Johannesburg, South Africa-based company said in a statement today. Revenue gained 22 percent to 49.8 billion rand.

The South African company said it has begun “early stage” talks with Caterpillar to possibly buy distribution rights and assets of Bucyrus International Inc. in markets where Barloworld runs dealerships. Caterpillar bought Bucyrus, a maker of mining equipment, for $8.8 billion in July.

“Good growth in the mining sector, together with some significant contract awards, led to significantly higher profits” at the company’s southern Africa and Russian equipment businesses, said Clive Thomson, the company chief executive officer.

Barloworld said “favorable” commodity prices will help first-half results, while growth in the second half will be slower “due to the higher base.”

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at smantshantsh@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net