Bell seeks growth in South America

Bell Equipment, the listed designer, manufacturer and distributor of heavy equipment, is expanding its footprint in South America as it seeks growth outside the depressed SA market.

Bell Equipment, the listed designer, manufacturer and distributor of heavy equipment, is expanding its footprint in South America as it seeks growth outside the depressed SA market.

The company bemoans a number of negative factors in SA, including the prolonged policy uncertainty on land reform and lack of economic stimulus.

Bell CEO Leon Goosen said on Monday geographic diversification countered difficult conditions in other geographies.

Releasing results for the six months ended June 30, Goosen said key sectors in SA, mining and construction, have experienced poor trading conditions.

Bell supplies equipment to the construction, mining, quarrying, agriculture, forestry and waste-handling industries.

“As you can see, the traditional construction companies such as Group Five and Basil Read are struggling,” he said.

North America is a region earmarked for growth given the acceptance of Bell products and the potential to grow the dealer network and market share.

“In this mature and highly competitive market the focus is on supporting the dealer network to ensure that we have the correct levels of support for sustained growth,” he said.

In Europe, demand in the UK remains strong but weakness in the pound affected margins.

“The rest of the European dealer network continues to perform well, with pleasing growth in Germany, France and Russia, with the group’s products again being well received at Bauma Munich, the premier global exhibition for construction and mining equipment in Europe,” Goosen said. The company is watching the Brexit developments closely. “The UK is an important market for us.”

In the six months to endJune, Bell increased revenue from the previous R3.7bn to R4bn, while profit improved 14%, from R133.1m to R152.3m. The company declared an interim dividend of 20c a share.