R/€ = 13.14
R/$ = 12.05
Au 1200.03 $/oz
Pt 1139.50 $/oz
Jan 24, 2008
Barloworld upbeat on acquisitive growth prospectsBack
© Reuse this Newly restructured Barloworld was investigating "a couple" of potential acquisitions, and could be pouncing on one of them by the end of September, CEO Clive Thomson said on Thursday.
The firm had up to R1-billion that it could use for acquisitive growth, he said.
"There are a couple of things that we are investigating literally as we speak," stated Thomson.
"If we go through satisfactory due diligences then we could very well see something happen this financial year," added he, speaking in an interview, after the group's annual general meeting in Sandton.
Thomson highlighted one sector that Barloworld was looking to target was logistics, which he said was growing rapidly, in Southern Africa, as well as other areas globally.
Primarily, these regions included the Asia Pacific, the Middle East, and Europe.
Transformation on trackMeanwhile, the company's implementation of its much-awaited black economic-empowerment deal was on schedule to be wrapped up in the first half of 2008, chairperson Dumisa Ntsebeza told shareholders.
"The transaction will be broad based involving a number of parties, including employees, community and social investment partners, strategic, black equity partners, and black nonexecutive directors," he added.
The firm came under fire from outspoken black businessmen last year, after it appointed Trevor Munday as deputy chairperson, calling the appointment "racist, condescending and patronising".
Munday has since resigned from the Barloworld board.
Equipment growth strongBarloworld, which is the second-biggest distributor out of Caterpillar's 196 dealers globally, said that its equipment division in southern Africa continued to benefit from buoyant mining and construction activity.
"The equipment division in Southern African territories continues to experience strong growth in the mining and construction sectors," Ntsebeza stated.
"As global demand has resulted in extended lead times, we are working proactively with Caterpillar to meet customer expectations and delivery dates."
"The order book remains strong and we expect good performance to continue for this financial year," he added.
Local interest rates biteIts South African automotive division, however, had taken strain from the introduction of the National Credit Act (NCA) last year, as well as rising debt levels.
"Passenger vehicle sales in Southern Africa remain under pressure, in response to the cumulative impact of high consumer debt, interest rate increases and the NCA," Ntsebeza said.
"We expect these tough conditions to continue in the months ahead."
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Automotive News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...