Down but not out
BARLOWORLD AND ITS shareholders were prepared for a tough first half 2010. However, the extent of its earnings nosedive has taken the market by surprise. Fund managers that spoke to say bottom-line recovery now hangs on the speed at which the revival in southern African mining activity filters through to heavy machinery demand.
Barloworld warned shareholders last week its headline earnings from continuing operations could be as much as 85% lower in the six months to end-March this year. The bulk of its business concerns is the supply and sale of Caterpillar earth-moving equipment.