http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.18Change: -0.04
R/$ = 11.03Change: -0.12
Au 1222.46 $/ozChange: -13.66
Pt 1352.00 $/ozChange: -10.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 21, 2012

Contract mining and plant rental division pushes up Eqstra profit

Back
Construction|Industrial|Industrial Equipment|PROJECT|Projects|Rental|Botswana|Mozambique|Namibia|Contract Mining|Equipment|Industrial Equipment|Logistics|Mining
Construction|Industrial|Industrial Equipment|PROJECT|Projects|Rental||Equipment|Industrial Equipment|Logistics|Mining
construction|industrial|industrial-equipment-company|project|projects|rental|botswana|mozambique|namibia|contract-mining|equipment|industrial-equipment|logistics|mining
© Reuse this



JSE-listed Eqstra on Tuesday reported improved financial results for the 2012 financial year, boosted by increased aftermarket sales in its industrial equipment division, as well as an upsurge in rental activity from its contract mining and plant rental division.

Profit increased to R488-million during the year ended June, compared with the R360-million recorded in the prior year.

The group recorded a revenue increase of 18%, from R6.9-billion in 2011, to R8.1-billion in the 2012 financial year.

Rentals in its contract mining and plant rental division increased as the Benga project, in Mozambique, ramped up production volumes and activity picked up in Namibia and Botswana.

The contract mining and plant rental division attracted a profit before tax of R109-million, up from R51-million in 2011, while revenues jumped 14.9%, from R3.2-billion in 2011, to R3.7-billion in the 2012 financial year.

The company’s construction and mining equipment division, however, weighed on the firm’s results, reporting a profit before tax of R1-million, which is a 95.8% fall from the R24-million achieved in 2011. Revenue fell 10.8%, reaching R452-million during the period under review, compared with R507-million in the prior year, owing to slowing equipment demand as commodity prices and projects contracted.

However, the company remained optimistic of the division’s future performance as aftermarket revenues and market share gains in the dump truck market were expected to increase.

Eqstra’s industrial equipment division earned R1.9-billion in revenue in 2012, compared with R1.6-billion the year before, with a 28% year-on-year profit-before-tax increase to R130-million.

Further, within the group’s fleet management and logistics division, revenue reached R2.1-billion for the year, up from R1.9-billion a year ago, and profit before tax of R219-million was recorded, compared with R186-million in 2011.

Basic and headline earnings a share, from continuing operations, increased 34.8% and 6.2% to 89.4c and 77.2c, respectively. Eqstra’s discontinued operations recorded basic earnings a share of 26.5c, bringing total basic earnings a share to 115.9c for the period under review.

Eqstra’s sale of its Bucyrus business unit in June resulted in a net cash inflow to the group of R424-million.

The group also reported giving notice to terminate its distribution rights for New Holland Construction from August 31. The New Holland Construction business unit was classified as a discontinued operation earlier this year.

Eqstra declared a dividend of 28c a share for the year ended June.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Mining News
De Beers CEO Philippe Mellier
Global 2013 rough diamond carat production was still well below the 2005 peak of 175-million carats, at a time when global diamond jewellery demand had reached record highs, De Beers said on Wednesday. Releasing its inaugural Diamond Insight Report, which...
Randgold Resources, a joint-venture (JV) partner in AngloGold Ashanti's Kibali mine in the Democratic Republic of Congo, believes the stake it does not own is too costly at current prices, its chief executive said on Tuesday. CEO Mark Bristow spoke in response to a...
The mining industry, which is facing tumultuous times in terms of funding, collapsed project pipelines and the ever present issue of resource nationalism, needs to develop an innovative strategy to ensure its sustainability and relevance going forward, says...
More
 
 
Latest News
Ian Donald and Sullivan O’Carroll
Nestlé South Africa announced plans on Wednesday to invest a further R2-billion over the coming five years to grow its domestic manufacturing base, which would increasingly be used as a platform to supply into fast-growing sub-Saharan African markets. The Swiss food...
In a landmark R1.5-billion deal that precedes it planned listing on the JSE, Pivotal Property Fund has acquired “strategic” land and property assets from Standard Bank Properties, which includes Sandton’s landmark Alice Lane development. “Pivotal has acquired...
Lafarge Africa, Finland's Wartsila and the World Bank's IFC have agreed to build a 220 MW gas-fired power plant in Nigeria to boost electricity supplies, they said on Wednesday. The trio said in a statement their plan was to help fast-track increased power supplies...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks