Barloworld anticipates massive jump in earnings for the year

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Barloworld has been an official Cat dealer since 1927
Barloworld has been an official Cat dealer since 1927
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Industrial brands company Barloworld says it anticipates a significant improvement in its financial results for the year ended 30 September 2021.

In a trading statement on Wednesday, Barloworld said its basic earnings per share are likely to be between 1 202 and 1 442 cents per share, from a loss of 1 236 cents in 2020. Its basic headline earnings per share are likely to rise from 268 cents in 2020 to between 1 091 cents and 1 309. 

The group, which is expected to release its annual results on 22 November, attributed the improvement to the performance of its equipment business in Southern Africa and Euroasia. Barloworld is a licenced dealer for Caterpillar earthmoving equipment through its equipment business.

The industrial brands company also said its consumer industries operations Ingrain, which it acquired from Tongaat Hulett in 2020, had contributed to its performance. It also credited the improved performance of its car rental and leasing business, as well as the implementation of austerity measures.

Barloworld's car rental business was hit hard by the pandemic, which battered the transport sector, Fin4 reported previously. And as part of its strategy to exit vehicle retail, it sold its motor retail business to NMI Durban South Motors, a company it has a 50% stake in. But its starch and equipment businesses helped cushion it against the impact of Covid-19.

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