http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.13Change: -0.12
R/$ = 15.02Change: -0.10
Au 1279.21 $/ozChange: 2.39
Pt 1064.50 $/ozChange: 3.00
 
 
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 About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 22, 2012

Imperial logistics business grows despite difficult trading conditions

Back
Imperial Holdings CEO Hubert Brody discusses the company's results for the year ending June. Camerawork: Nicholas Boyd, Editing: Shane Williams
 
 
 
Construction|Africa|Business|CIC Holdings|Components|Environment|Imperial Holdings|Imperial Logistics|Imperial-Logistics|Industrial|Industrial Equipment|Lehnkering|Namibia|Paper|Ports|Rental|SECURITY|System|Tourism|transport|Africa|South Africa|Equipment|Food Sectors|Industrial Equipment|Industrial Services|Logistics|Manufacturing|Manufacturing Clients|Manufacturing Volumes|Retail|Service|Services|Steel|Rhine|Hubert Brody|Infrastructure|Jacob Zuma
Construction|Africa|Business|Components|Environment|Imperial Logistics|Imperial-Logistics|Industrial|Industrial Equipment|Namibia|Paper|Ports|Rental|SECURITY|System|Tourism|transport|Africa||Equipment|Industrial Equipment|Logistics|Manufacturing|Service|Services|Steel||Infrastructure|
construction|africa-company|business|cic-holdings|components|environment|imperial-holdings|imperial-logistics|imperial-logistics-company|industrial|industrial-equipment-company|lehnkering|namibia|paper|ports|rental|security|system|tourism|transport|africa|south-africa|equipment|food-sectors|industrial-equipment|industrial-services|logistics|manufacturing|manufacturing-clients|manufacturing-volumes|retail|service|services|steel|rhine|hubert-brody|infrastructure|jacob-zuma



Good acquisitions and contract gains have offset the impact of stagnant manufacturing numbers and price competitiveness in Imperial Holdings’ regional logistics business, CEO Hubert Brody said on Wednesday.

The diversified industrial services and retail group’s Southern African logistics business won more contracts from existing and new clients during the year ending June, despite a challenging trading environment.

“Some of the subdivisions, like the tankers business and the general transport and warehousing business actually performed very well. But this is owing to good contract gains, while the markets were difficult,” Brody noted.

The Southern Africa logistics business recorded a 19% growth in revenue to R16.46-billion and 16% growth in operating profit to R910-million for the year ended June.

However, operating margins for the period declined by 0.2% to 5.5%, owing to the acquisition of consumer goods service provider CIC Holdings at the beginning of 2011.

Acquisitions during the reporting period included German logistics firm Lehnkering, 74.9% of dry-bulk shipping business Dettmer Bulk Reederei operating on the Rhine river; 70% of Datadot, a business that uses microdots as a security identification system to protect, among others, motor vehicles and motorcycles; as well as 75% of vehicle accessories and outdoor equipment business Safari Centre.

Brody indicated that manufacturing volumes had been flat in South Africa, making clients more price-sensitive. He added that some of the company’s manufacturing clients had been affected by industrial action at the beginning of the year, especially in the steel, fuel, paper and food sectors.

Meanwhile, Imperial’s construction clients had also been impacted by the slow start of the South African government’s infrastructure development plans, announced by President Jacob Zuma in his State of the Nation Address in February.

Looking north of South Africa’s borders, Brody said the company found that its transport volumes were under some pressure, particularly in Namibia.

“Some of the other transport corridors to other ports in Africa are becoming more reliable…there, is maybe, less reliance on South Africa, which has impacted on certain of the transport routes,” he explained.

However, Brody insisted that notwithstanding increased competition in the Southern Africa space, the company achieved good numbers.

GROUP RESULTS

Imperial achieved a 25% growth in revenue at R80.8-billion and operating profit increased by 25% to R5.6-billion with the group achieving a return on equity of 23% and core earnings a share rising 32%.

The group’s parts, components and industrial equipment businesses increased turnover by 16% to R7-billion. Operating profit was up 23% to R503-million, 9% of group operating profit.

Logistics revenue grew by 34% and operating profit increased by 33%, while the combined distributorship, retail and financial services revenue and operating profit was up 22% and 23% respectively.

Imperial attributed the growth to strong growth in the South African motor vehicle market, strengthening of the market positions of the group’s imported brands and lower interest rates.

The group sold 114 754 new vehicles in the financial year, 19% higher than the prior period, outperforming the South Africa new vehicle market, which grew by about 13% during the reporting period.

The company’s car rental and tourism revenue grew by 15% and operating profit increased by 8%.

“We saw growth across the group; particularly positive is that growth in the logistics business exceeded that of the other businesses because this is the area we want to put particular emphasis on, in terms of expanding our portfolio,” Brody stated.

PROSPECTS

In the short term, Imperial expected trading conditions in the Southern African logistics division to remain challenging. “But many of our good contract gains will start kicking in even more now and make a good contribution,” Brody noted.

The growth rate of new vehicle sales in South Africa was also anticipated to slow, as the base was currently substantially higher. However, the recent reduction in interest rates was expected to support demand.

“Under current conditions, we expect growth in 2013, albeit at a slower rate than what it was in the past year,” Brody said.
 

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Emira CEO Geoff Jennett
The JSE-listed Emira Property Fund has invested over R250-million in acquiring new centres and upgrading its shopping centres to strengthen its retail assets, according to Emira CEO Geoff Jennett, who stated on Thursday that the company was investing strategically....
Equites CEO Andrea Taverna-Turisan
JSE-listed Equites Property Fund achieved an 18.3% year-on-year increase in distributions to 96.6c a share for the year ended February 29. “The distribution growth reflects the strong property fundamentals of the Equites logistics portfolio,” Equites CEO Andrea...
It takes a coherent company to successfully and sustainably close the gap between strategy and execution in Africa, and one of the key factors in doing so is unconventional leadership, which is needed to foster the behavior required of coherent companies, according...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
Updated 5 hours ago Following the drop in commodity prices and China’s demand for Africa’s resources, African economies were slumping and gross domestic product growth was stagnating in most of the continent’s emerging markets, said the New Partnership for Africa’s Development, or...
Updated 5 hours ago The New Development Bank, a multilateral lender formerly known as the Brics Development Bank, will provide $811-million in a first round of loans for clean energy projects in four nations.
Updated 5 hours ago South African car and bakkie exports into Africa declined for the third year in a row in 2015, falling from 79 228 units in 2012, to 77 589 units in 2013, 60 189 units in 2014, and 41 446 units last year – this according to the Automotive Industry Export Council’s...
Updated 5 hours ago Networking systems multinational Cisco is training 75 people as part of a pilot project to develop specialist networking skills in South Africa, says Cisco South Africa CTO Vernon Thaver. The trainees were nominated by and selected from Cisco’s local partners and...
Updated 5 hours ago The threat landscape is changing, along with technologies, impacting on new fields, such as industrial infrastructure, which is becoming increasingly connected. Smart cities are also developing fast through connected devices, Web services and cloud solutions, but...
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149