http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.58Change: 0.17
R/$ = 10.95Change: 0.02
Au 1201.61 $/ozChange: 2.45
Pt 1226.50 $/ozChange: -3.50
 
 
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 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|SECURITY|Africa|CIC Holdings|Components|Environment|Imperial Holdings|Imperial Logistics|Imperial-Logistics|Industrial|Industrial Equipment|Lehnkering|Ports|Rental|Security|System|Africa|Namibia|South Africa|Security|Equipment|Food Sectors|Industrial Equipment|Industrial Services|Logistics|Manufacturing|Manufacturing Clients|Manufacturing Volumes|Retail|Security|Service|Services|Steel|Transport|Rhine|Hubert Brody|Infrastructure|Jacob Zuma|Security
Construction|SECURITY|Africa|Components|Environment|Imperial Logistics|Imperial-Logistics|Industrial|Industrial Equipment|Ports|Rental|Security|System|Africa||Security|Equipment|Industrial Equipment|Logistics|Manufacturing|Security|Service|Services|Steel|Transport||Infrastructure|Security
construction|security|africa-company|cic-holdings|components|environment|imperial-holdings|imperial-logistics|imperial-logistics-company|industrial|industrial-equipment-company|lehnkering|ports|rental|security-company|system|africa|namibia|south-africa|security-facility|equipment|food-sectors|industrial-equipment|industrial-services|logistics|manufacturing|manufacturing-clients|manufacturing-volumes|retail|security-industry-term|service|services|steel|transport-industry-term|rhine|hubert-brody|infrastructure|jacob-zuma|security-person
© Reuse this



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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
Engineering support services company Babcock Africa, sole importer and distributor of DAF trucks to the Southern African market, announced in October that it had established a dedicated finance company, Babcock Financial Services (BFS). “This development will give...
Logistics services provider DHL launched two new facilities, in Plumbago Business Park, east of Johannesburg, for its Supply Chain and Global Forwarding divisions last month.
More
 
 
Latest News
Industrialisation remains a major part of the South African developmental agenda and an important vehicle towards achieving the Department of Trade and Industry’s (DTI’s) target of creating 100 black industrialists in the next five years, Trade and Industry...
The construction of a new innovation hub in the heart of the Dube TradePort, in Durban, was set to kick off in March 2016, as Dube TradePort Corporation sealed a R160-million lease agreement with Eureka Capital. Eureka Capital planned to develop a seven-storey 21 500...
South Africa will become the first African country to host the Organisation for Economic Cooperation and Development’s (OECD’s) Steel Committee Conference when the committee’s seventy-seventh session takes place in Cape Town between December 11 and 12. The...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
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