Aug 21, 2012
Contract mining and plant rental division pushes up Eqstra profitBack
Construction|Industrial|Industrial Equipment|PROJECT|Projects|Rental|Botswana|Mozambique|Namibia|Contract Mining|Equipment|Industrial Equipment|Logistics|Mining
© Reuse this
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)
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...
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 multibillion-rand development of the Zendai Modderfontein New City, east of Johannesburg, will aim to exemplify an integrated city node, says property group Zendai South Africa COO Wenhui Du. The development will focus on the Modderfontein Gautrain station to be...
The South African Civil Aviation Authority (CAA) hopes to have finalised regulations for the flying of Unmanned Air Vehicles (UAVs) – also designated Remotely Piloted Air Systems (RPAS) and popularly called drones – in the country’s civilian airspace by the end...
Various stakeholders have expressed optimism that the Small Business Development Ministry, created after the national elections in May, will add much needed impetus to enterprise development in South Africa, where a strengthening of the entrepreneurial culture is...
Capturing and storing carbon dioxide (CO2) is the only way through which the world will achieve the lowest of the United Nations Framework Convention on Climate Change’s (UNFCCC) global warming predictions, called the representative concentration pathway (RCP) 2.6....
The City of Johannesburg has recovered R107-million following the arrest of 22 people allegedly involved in corruption, collusion, fraud and tampering with the city’s electricity systems, which had ultimately cost the city R200-million in lost revenue.