The company reported good results for equipment in southern Africa, despite the drop in commodity prices and reduced mining capex. Mozambique, Zambia and Namibia all produced positive results.
[DATA BAW:Barloworld] adds that its handling and the agriculture businesses have been trading in line with the prior period.
“There are currently no changes to the 2015 revenue outlook ranges provided for the Equipment and Handling businesses at the time of releasing our year end results. However, there is some increased risk in relation to the Russia performance as a result of economic developments over the past few months,” the report said.
The automotive and logistics division of the company has been positive this quarter. The results are driven by motor retail and car rental departments.
“Rental days and rate per day in car rental are ahead of last year contributing to a good trading performance, while Fleet Services is in line with the prior period.”
The company’s logistics faced a weaker trading environment, however, notable supply chain management contracts are likely to contribute to an improved performance throughout the year.
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In terms of working capital and funding, Barloword reports an increase in working capital to fund inventory. This adds to a higher net debt that is predicted to decline over the second six months of the financial year.