JSE-listed heavy equipment manufacturer Bell on Friday reported a R272-million loss for the year ended December 31,2009, describing the 12-month period as the "toughest and most challenging" year in the group's history.

Bell said that the loss was despite management taking "aggressive" steps to curb the losses.

In the 2008 financial year, Bell posted profit of R360,7-million. The company's revenue declined by 50,6% to R2,7-billion.

Incoming chairperson Mike Mun-Gavin said that a key limiting factor had been availability of finance for customers wanting to make high-value purchases.

"However, we are now seeing some increasing appetite for deals from the finance houses."

The company was supported through the trough by additional funding being made available by major shareholders. The Bell family made loans of R300-million available and John Deere made additional trade credit available.

South Africa's Industrial Development Corporation also made a loan available of R150-million under the government's distressed sector programme.

"There are discussions about further loans focused on supporting our research and development initiatives and capex requirements so that we can take immediate advantage of any upturn with new products and updated manufacturing equipment and facilities.

"The support from global players providing a wider range of products, such as John Deere as a shareholder and Hitachi and Liebherr as trade alliance partners, demonstrate confidence in the Bell Equipment brand," said Bell Group CEO Gary Bell.

He added that the level of sales over the last three months had improved and that the company was seeing increasing enquiries.

"However, we are being cautious of the growing green shoots, led by the recovering commodity markets and ongoing road infrastructure spend, and still have contingency plans should the projected economic recovery not occur," said Bell.

JOB LOSSES

Meanwhile, the group reported that it had cut 1 148 jobs during the year under review in order to ensure its sustainability.

"As we continue to rightsize, we will further reduce our work force in 2010, but hopefully this effect will be countered by the re-employment of certain personnel," the company said.

Mun-Gavin will succeed Howard Buttery as chairperson in May.

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