UPDATE 1-Bidvest Q1 profit better, says conditions tough
* Says conditions tough in S.Africa
* Says auto sector "levelled out"
* Bid Industrial, Commercial under-performing
* UK-based Ontime breaking even
(Adds details)
JOHANNESBURG, Nov 26 (Reuters) - South Africa's Bidvest (BVTJ.J) said it made better profit in the first quarter to end-September as economic recovery in its key markets boosted demand for its products and services.
"Most of the divisions have, during the quarter to September 2009, achieved better profit," Bidvest Chief Executive Officer Brian Joffe said in statement posted on the company's website on Thursday.
Bidvest, whose activities cover auto retailing, freight services and food distribution, has suffered in recent times as slower economic growth in Europe, Asia and South Africa hit demand for its products and services.
Joffe said the automotive sector "appears to have levelled" out" with used vehicles volumes and margins showing improvement but banks were still not granted finance more freely.
The company's industrial and commercial unit, which makes electrical products, office furniture and catering equipment, was "under performing" due to significant price deflation in some of their core products, he said.
The recently restructured Ontime Automotive, a UK-based distributor of vehicles, was breaking even and generated "small profit" in October, he said.
Joffe said Europe and Asia Pacific economies, where the group operates, were stable but South Africa -- whose economy emerged out of a recession with a modest 0.9 percent GDP growth in the third quarter -- was weaker.
"Trading conditions remain reasonably tough, however they are expected to improve in the coming months leading up to the Soccer World Cup and beyond," Joffe said. (Reporting by Tiisetso Motsoeneng) ((tiisetso.motsoeneng@thomsonreuters.com; +27 11 775 3122 Reuters Messaging: tiisetso.motsoeneng.reuters.com@reuters.net))
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