Barloworld ’on track’

South African industrial brands group Barloworld on Wednesday reported a five per cent increase in headline earnings per share. The group’s net profit was up 23 per cent to R2.176bn, while operating profit before goodwill and amortisation was up 17 per cent to R3.48bn. Cash flows from operations remained strong at R3.6bn.

"Since the introduction of value-based management six years ago, we have grown headline earnings per share at a compound growth rate of 20 per cent per annum. In 2002, we set ourselves the goal of doubling the value of the company in four years and we are well on track to achieving it," CEO Tony Phillips said. 

The group reported a strong performance from the cement and lime business, record new motor-vehicle sales and a solid result from the coatings business, and the company took full advantage of the strong trading conditions in most of Southern Africa.  "Our Southern African businesses are well positioned to take advantage of the organic growth opportunities that should present themselves under this positive growth scenario. 

"In the year ahead, we plan to capitalise on the continuing strength of the South African economy and to generate improved results from our international operations. We will continue to focus on further improving our returns and growing profits throughout the businesses," Phillips said.