Barloworld expects to report significant full-year earnings loss
JSE-listed industrial group Barloworld expects to report a basic loss a share of between 721c and 767c apiece for the financial year ended March 31.
This is at least a 265% difference on the earnings a share of 438c apiece reported for the year ended March 31, 2019.
Normalised headline earnings per share (HEPS) for the group are expected to be at least 25% lower at between 391c and 338c apiece in the year under review, compared with normalised HEPS of 521c apiece in the prior year.
The company warns that, owing to the financial performance, as well as the increased uncertainty of the impact of Covid-19 globally, it will not be declaring any dividends until further notice.
Barloworld says its results for the year under review were impacted by a challenging trading environment, characterised by continuing low business confidence, decreasing commodity prices and depressed consumer demand.
Covid-19 and the prevailing global economic slowdown resulted in higher credit losses and impairments, including in non-operating and capital items.
Additionally, the classification of the Avis Fleet business as a held for sale and discontinued operation at March 31 impacted on the results, since it was a continuing operation in the prior year.
The company says its results was further impacted by a broad-based black economic empowerment deal it undertook in the year under review with Khula Sizwe, while it also had to pay higher effective tax rates driven by local currency devaluations.
Barloworld advised that its balance sheet as at the end of the year under review remained strong, with headroom on facilities for both local and offshore operations.
The full results will be released on or about June 30.
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