Barloworld CEO Dominic Sewela. (Barloworld/Courtesy)
Industrial and logistics group Barloworld suffered a drop in revenue as mining companies cut equipment orders as bottlenecks from the rail and ports crisis persisted in the six months to March.
Group revenue fell 8 percent to about R19 billion by the end of March, while operating profit from core operations fell 12 percent to R1.9 billion. The group said it expected a slowdown in mining activity in South Africa due to port and rail congestion but still had to contend with a high inflation and interest rate environment.
The group, worth about R16.7 billion on the JSE, supplies industrial and mining equipment and is the official supplier of Caterpillar machinery in several African countries, including Russia. Currently, the group has two main divisions: its equipment and services business, which handles items such as earthmoving machinery and power systems, and its consumer industrial division, which is comprised of Tongaat Hulett's former starch business, now called Ingrain.
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