R/€ = 13.83
R/$ = 11.04
Au 1172.85 $/oz
Pt 1231.00 $/oz
Jan 24, 2008
Barloworld upbeat on acquisitive growth prospectsBack
Construction|Africa|Barloworld|Caterpillar|Fire|Africa|Europe|Automotive|Equipment|Logistics|Mining|Clive Thomson|Dumisa Ntsebeza|Trevor Munday|Asia Pacific|Middle East
© 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 Video News
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...