Bloomberg News

Barloworld Receives $400 Million Order for Caterpillar 797s

November 15, 2011

(Updates with CEO’s comments starting in second paragraph.)

Nov. 14 (Bloomberg) -- Barloworld Ltd. received orders from Vale SA’s Mozambique operations for 10 Caterpillar Inc. 797 “megatrucks,” which will add at least $400 million to revenue, Chief Executive Officer Clive Thomson said.

“Each truck is a business opportunity on its own,” Thomson said in a phone interview today. Priced at $40 million to $50 million each, the trucks will provide Johannesburg-based Barloworld, the world’s largest trader of forklifts, with income during their 10-year lifespan. “During the 10 years we will continually service and supply new parts for the trucks,” said Thomson.

Currently in their second year, Rio de Janeiro-based Vale’s Moatize and Riversdale coal projects in Mozambique have a 30- year lifespan, said Thomson. The trucks will be delivered in 2012 and 2013. The 797 has a payload of 400 tons of ore and is the largest truck Barloworld has sold, said Thomson. Mozambique was Barloworld’s second-biggest revenue contributor in in southern Africa in the year through September, the company said in a statement today.

Net income attributable to Barloworld owners was 1.02 billion rand ($129 million) in the year through September, compared with a loss of 7 million rand a year earlier, the company said in the statement. Revenue advanced 22 percent to 49.8 billion rand.

Barloworld’s stock rose as much as 3 percent to 71.58 rand and traded 2.7 percent higher at 71.40 rand as of 10:46 a.m. in Johannesburg.

--Editors: Robert Valpuesta, Thomas Mulier.

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at smantshantsh@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


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