pratlou
Senior Member
Industrial group Barloworld has advised shareholders it has entered into discussions, which, if concluded successfully, may have a material effect on the price of its shares.
The company said in March that it had entered consultations with organised labour and affected stakeholders to restructure parts of its local Ingrain operations that could lead to dozens of job losses.
In its five-month pre-close update released on March 26, Barloworld reported that revenue from its consumer industries company, Ingrain, was down 5.2% due to lower overall volumes, reduced export pricing and agri-product recoveries. Port challenges at Durban harbour and the competitive global pricing of starch throughout the period under review had a negative effect on exports into Australia and the deep-sea markets.
He said that as Ingrain customers were subsequently reducing their volumes while port bottlenecks were further compounding the delivery of exports, the weak consumer sentiment and high interest rate environment had spurred the management to implement a plan to structurally lower the fixed cost base in the business.
“To that extent, we have declared a section 189 [process] in the Ingrain business,” Sewela said, adding that the process began in February.
“An organisational restructure has commenced as part of a broader turnaround plan to right-size Ingrain in line with its trading activity. This will position the business to deliver acceptable target returns,” he said.
About 920 people are employed. The process is expected to take up to six months.
www.businesslive.co.za
The company said in March that it had entered consultations with organised labour and affected stakeholders to restructure parts of its local Ingrain operations that could lead to dozens of job losses.
In its five-month pre-close update released on March 26, Barloworld reported that revenue from its consumer industries company, Ingrain, was down 5.2% due to lower overall volumes, reduced export pricing and agri-product recoveries. Port challenges at Durban harbour and the competitive global pricing of starch throughout the period under review had a negative effect on exports into Australia and the deep-sea markets.
He said that as Ingrain customers were subsequently reducing their volumes while port bottlenecks were further compounding the delivery of exports, the weak consumer sentiment and high interest rate environment had spurred the management to implement a plan to structurally lower the fixed cost base in the business.
“To that extent, we have declared a section 189 [process] in the Ingrain business,” Sewela said, adding that the process began in February.
“An organisational restructure has commenced as part of a broader turnaround plan to right-size Ingrain in line with its trading activity. This will position the business to deliver acceptable target returns,” he said.
About 920 people are employed. The process is expected to take up to six months.
Barloworld enters into discussions
The industrial group has advised shareholders to exercise caution in the share dealings
www.businesslive.co.za
