Barloworld is a distributor of leading international brands providing integrated rental, fleet management, product support and logistics solutions. The core divisions of the group comprise Equipment (earthmoving and power systems), Automotive (car rental, fleet services and motor trading), Handling (forklift truck distribution and fleet management) and Logistics (logistics and supply chain management).

We offer flexible, value adding, integrated business solutions to our customers backed by leading global brands. The brands we represent on behalf of our principals include Caterpillar, Hyster, Avis, Audi, BMW, Ford, General Motors, Mercedes-Benz, Toyota, Volkswagen and others.

Strong operating cash generation in difficult trading environment

• Revenue increased 6% to R22 514 million
  
• Cash generated from operations up 26% to R1 195 million
  
• Operating profit before restructuring charges decreased  12% to R1 159 million
  
• Strong performance from Equipment southern Africa
  
• Automotive delivers good result in difficult markets
  
• Decisive action taken to reduce cost base in international operations
  
• Further improvement in debt maturity profile
  
• Interim dividend of 40 cents per share
  

Clive Thomson, CEO of Barloworld, said:
“Trading in equipment southern Africa in the six months continued to be strong and the automotive division has performed well in difficult markets. However challenging trading conditions prevailed in our international operations and restructuring charges of approximately R114 million, principally in Iberia, were incurred to realign our cost base with lower activity levels. Negative financial instrument adjustments and higher net finance costs also impacted the group’s profits in the first half of 2009.

The overall trading environment in the second half is expected to remain difficult. In these circumstances we will retain our focus on expense and working capital management and our various initiatives should result in strong cash flow for the year. We expect to entrench our positions of market leadership and this will ensure that we are well placed to weather the economic downturn and position ourselves for long term success as the external environment improves.”

11 May 2009