Logistics group’s 2014 revenue showed 8.1% improvement
CLIVE THOMSON Barloworld's automotive and logistics division's revenue increased by R2.3-billion during the financial year ended September 30, 2014
Photo by Duane Daws
ON THE RISE Barloworld’s international logistics businesses are expected to improve in 2015 as a result of new contracts that have been secured
Photo by Duane Daws
The revenue of JSE-listed Barloworld’s automotive and logistics division increased by 8.1%, or R2.3-billion, to R31.1-billion during the financial year ended September 30, 2014, excluding income that had been generated by the group’s Motor Retail Australia business unit, which was sold in April 2014.
Barloworld CEO Clive Thomson states that the increase can be attributed to the division’s “improved operating efficiency and disciplined cost control”.
The automotive and logistics divisions also raised their operating profit by 24% in 2014 to R1.6-billion, while the operating margin increased from 4.6% in 2013 to 5.3%.
Meanwhile, the logistics segment of Barloworld’s logistics and automotive divisions generated revenue of R4.4-billion last year, a similar result to 2013’s, while Barloworld’s transport business made significant improvements last year, owing to the acquisition of diversified logistics group Manline in 2013.
The transport business also helped the logistics segment increase its operating profit by 22% to R122-million, excluding the R20-million receivable provision from Barloworld’s furniture retail client, Ellerines.
“The supply chain management profitability was adversely impacted on by the provisioning required for the Ellerines contract, following its business rescue proceedings in early August,” Thomson explains, adding that a R76-million provision was made for the impairment of intangibles and other assets relating to the contract.
However, he notes that the logistics segment had a loss in freight management and services in 2014, owing to poor freight volumes in Spain and reduced sea and air freight volumes in the Middle East, following the loss of a significant customer in January last year.
Thomson is positive that Barloworld’s logistics segment will maintain its growth in 2015. “The transport business will benefit from the organic capital deployed and acquisitions finalised in 2014. Further the international logistics businesses are expected to improve in 2015 as a result of new contracts that have been secured and various actions taken,” he concludes.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation