Bell Equipment, a manufacturer and distributor of heavy-duty equipment and articulated vehicles, has advised shareholders to expect annual earnings to jump by as much as two-thirds amid improved market conditions.
The market responded positively to the news, sending the company’s share price up the most in seven weeks on Thursday, up 3.95% to R15.80.
Revising a notice published in December that indicated a 40% increase in headline earnings per share (Heps) for the year to end-December, the company now expects a rise of 58%-65% from the 294c recorded in 2021. This will see it report Heps, the main profit measure in SA, of 465c-485c.
“The expected increase in earnings is mainly due to stronger market conditions, which have had a positive impact on production and sales performance,” it said.
This is after it said last year it was grappling with economic slowdowns in some markets where it operates, supply chain disruptions and low infrastructure spending in SA.
It said it would be guided by its growth and resilience strategy, which included pursuing plans outside SA and focusing on increasing its manufacturing footprint in the northern hemisphere. It aims to improve responsiveness and efficiencies by manufacturing products closer to suppliers, as well as the markets in which they are sold.
Bell Equipment — valued at R1.5bn on the JSE — manufactures, distributes and exports a wide range of heavy-duty equipment for the construction, mining, quarrying, sugar, forestry and waste-handling industries worldwide. The group boosts its offering with aftermarket products, including parts, service contracts, transport, extended warranties and rentals.
Mining activity in SA exceeded expectations leading to higher demand for products within the sector, it said.
The group said its agreement to distribute and support the JCB Agriculture product range in SA has seen continued market share gains. JCB’s range includes backhoe loaders, wheeled loaders, excavators and telehandlers. Bell is recognised globally as an articulated dump truck specialist with the largest range in the world.
The results are expected on March 31.
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