* Southern Africa, Russia equipment unit robust
* Shares up nearly 2 percent, outpace index
JOHANNESBURG Nov 7 South African industrial
group Barloworld Ltd said on Wednesday full-year profit
likely rose as much as 50 percent, lifted by buoyant demand for
mining equipment in southern Africa and Russia.
Barloworld, the biggest dealer of Caterpillar
earth-moving equipment in southern Africa, said it delivered
record sales of heavy-duty machines to mining companies in the
The company, which also operates in Russia, Iberia and
several African countries such as coal and gas-rich Mozambique,
said its Russian business delivered a strong performance,
although its Iberian unit suffered due to an economic slowdown
"We saw good demand for mining equipment in countries such
as Mozambique, Angola and South Africa," said Ian Stevens,
Barloworld financial director said.
The company said in a statement that headline earnings per
share for the year to September likely rose as much as 50
percent from the 465 cents it reported a year earlier.
Headline EPS, the main measure of profit in South Africa,
excludes certain one-time items.
Shares in the company, which are little changed so far this
year, rose 1.9 percent to 74 rand, outpacing a flat JSE
Demand for industrial equipment has increased in southern
Africa countries such as Mozambique, where enough gas to supply
Germany, Britain, France and Italy for 13 years was discovered
For Barloworld, that has helped offset weak demand in South
Africa's platinum industry, which is weighed down by wildcat
strikes, soaring costs, lower white metal prices.
Barloworld said its auto dealership unit also produced "good
results" as decades-low interest rates in South Africa boost
demand for cars while its logistic unit also delivered a
performance "well ahead of last year".
The company, which sold its UK and U.S. forklift businesses
for a total of $120 million this fiscal year, said profit likely
rose by as much as 58 percent if the proceeds from the sale of
the businesses were included.
Barloworld is due to report its results on Nov. 19.