Barloworld Profit Rises on Record Southern Africa Mine Sales
Net income rose 53 percent to 1.6 billion rand ($181 million) in the 12 months through September from a year earlier, the Johannesburg-based company said in a statement. Sales increased 18 percent to 58.6 billion rand and earnings per share climbed 53 percent to 7.35 rand, beating the median estimate of 6.74 rand by eight analysts surveyed by Bloomberg.
“We expect a slowing of mining-unit sales due to a global slowing of mining capital expenditure,” Chief Executive Officer Clive Thomson said by phone from Johannesburg. Spending on infrastructure, especially in Angola and Russia, will counter the lower sales to mines, he said.
Barloworld, which also has operations in Russia and Spain, said on Oct. 1 that global industry sales of new mining equipment will probably drop 25 percent after reaching a record this year. The worst labor unrest at South Africa’s mines since the end of apartheid has led to stoppages at gold, platinum, coal and iron-ore mines.
Increased uncertainty in the global and local economy has led to some deferment in mining capital expenditure, the company said.
The stock rose 2.6 percent to 75.01 rand, the highest since Sept. 21, by the close in Johannesburg. More than 804,780 shares, or 90 percent of the daily average over the last three months, changed hands.
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