http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.16
R/$ = 12.07Change: -0.10
Au 1204.60 $/ozChange: 1.40
Pt 1170.50 $/ozChange: 4.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 19, 2010

Hudaco plans ‘aggressive’ acquisition action

Back
Hudaco CEO Stephen Connelly speaks on the company's growth-strategy for the future. Edited: Darlene Creamer
 
 
 
Engineering|Gold|Africa|Environment|Fire|Industrial|Mining|Platinum|Africa|Tanzania|Zambia|Products|Solutions|Power
Engineering|Gold|Africa|Environment|Fire|Industrial|Mining|Platinum|Africa|Tanzania|Zambia|Products|Solutions|Power
engineering|gold|africa-company|environment|fire|industrial|mining|platinum|africa|tanzania|zambia|products|solutions|power
© Reuse this



Industrial products distribution group Hudaco CEO Stephen Connelly said on Monday that growing its business in the current economic environment was a "frustrating challenge" and that the group would embark on an "aggressive" acquisitions strategy to add to its revenue stream in the medium term.

The company had "beefed up" its acquisition team at the start of the year, and had also given the team enough "fire power" to achieve considerable success, Connelly told Engineering News Online, after the company's results presentation in Johannesburg.

"With the necessary cash and skills, we recently announced our first success with the acquisition of Filter & Hose Solutions (FHS) that we expect to come through in September.

"Earnings growth in a weak economy must come from acquisitions and FHS represents a welcome addition to group activities this year."

Hudaco showed a strong balance sheet of R363-million at its half-year 2010 results, which was about R300-million more than the previous year.

Of this, the company earmarked about R182-million this year for the FHS acquisition.

"The acquisition is expected to make a positive contribution to Hudaco's earnings in 2011, and hopefully in the last part of the year," said Connelly.

For the half-year ended May 2010, the company achieved relatively flat earnings. Volume sales were up with around 15% to the comparable period last year, but the improvement was more than offset by the decrease in prices resulting from rand appreciation of about 20%. This resulted in a 5% decrease in revenue to about R1,1-billion.

Connelly noted that volume sales in all businesses, up to April this year, showed good signs of recovery from the very depressed conditions prevailing during 2009. However, he added that during the last three months, sales had once again dropped sharply.

"Our sales volumes are not performing and we expect this to continue over the next 18 months, as we wait for demand for commodities across the world to pick up.

"It is too early to tell whether this sudden slump is due to temporary lower economic activity during the carnival atmosphere of the FIFA soccer World Cup or the beginnings of another recession or so-called double-dip recession."

Nevertheless, the company expected faster growth in other parts of Africa and Connelly noted that Hudaco would also be looking at increasing its business on the continent.

"Companies are going to the Copperbelt in Zambia, they are mining platinum in Zimbabwe, gold in Tanzania and cobalt in the Congo. We intend to follow our customers, as they expand on the continent," said Connelly.

He added that Hudaco's longer-term view was that a meaningful resumption in broad-based economic growth in South Africa could be expected by the second half of 2011.

 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
Acting Transnet CEO Siyabonga Gama
Acting Transnet CEO Siyabonga Gama, who was appointed to the position following the surprise secondment of Brian Molefe to Eskom, has placed revenue diversification at the top of his list of immediate priorities, with the weak commodity outlook seen as having the...
Monwabisi Kalawe
Suspended South African Airways (SAA) CEO Monwabisi Kalawe has resigned, with immediate effect, as his relationship with the State-owned carrier had been “irretrievably broken down”. The step was taken following arbitration proceedings between Kalawe and SAA, in the...
More
 
 
Latest News
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
JSE-listed Astrapak will sell specialised packaging systems manufacturer Knilam to Mapflex SA for R17.7-million. The proceeds would be used to reduce Astrapak’s current level of gearing.
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
More
 
 
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
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96