Barloworld Ltd., a supplier of construction equipment to Sasol Ltd. and BHP Billiton Plc in South Africa, said the weak rand is positive for the company because it has a number of dollar-based overseas contracts.
“If the rand stays at current levels, we will be happy with that,” Barloworld Chief Executive Officer Clive Thomson said in a phone interview from Johannesburg today. “It’s unlikely that the rand will weaken at the same rate.”
The company earns dollars from contracts in Zambia, Namibia, Mozambique and Russia, offsetting the impact of a sliding rand in the domestic market. The overall impact is “slightly positive,” according to Thomson.
The rand has declined 10 percent this year against the dollar, the second-worst performer of 16 major currencies tracked by Bloomberg. It weakened for an eighth day and was trading down 0.7 percent at 9.4726 per dollar by 12:16 p.m. in Johannesburg.