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<div id="main_media_container" style="position:relative;margin:auto;max-width:35em;color:#111111;font-family:Tahoma, Geneva, sans-serif;font-size:16px;white-space:normal;background-color:#FFFFFF;"> <div id="media_container" style="position:relative;overflow:hidden;"> <img src="http://cd.creamermedia.com/template/en2016/images/spacer_large.gif" style="display:block;width:560px;" /> <div class="media-item-container active-media-container" id="media_item_1" name="" style="position:absolute;top:0px;bottom:0px;width:560px;"> <img src="http://us-cdn.creamermedia.co.za/assets/articles/images/resized/0000788003_resized_bellsurfaceminingb601022.jpg" style="display:block;width:560px;" /> </div> </div> <div class="media-description-container" style="padding:1em;color:#FFFFFF;background-color:#3A3A3A;margin-bottom:1em;font-size:0.8em;"> </div> <div class="media-tools-container"> <div class="float-left link-container" style="float:left;display:inline-block;width:140px;"> </div> <div class="float-right link-container" style="float:right;display:inline-block;width:140px;"> </div> <div class="clearfix" style="clear:both;"> </div> </div> </div> <div class="article_title" style="margin:0px 159.922px 1em;max-width:63.875em;color:#111111;font-family:Tahoma, Geneva, sans-serif;font-size:16px;white-space:normal;background-color:#FFFFFF;"> <div class="meta" style="max-width:35em;margin:auto;"> <div class="left" style="float:left;width:280px;"> <p class="sml" style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;font-size:0.7em;text-transform:uppercase;"> <span style="color:#D90C0F;">18TH MARCH 2019</span>&nbsp;<br /> BY:&nbsp;<a href="http://engineeringnews.co.za/author.php?u_id=15" style="color:#000000;">IRMA VENTER</a>&nbsp;<br /> <span class="job-title" style="color:#999999;">CREAMER MEDIA SENIOR DEPUTY EDITOR</span> </p> </div> <div class="right align-right" style="text-align:right;float:left;width:280px;"> <p class="sml" style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;font-size:0.7em;text-transform:uppercase;"> <a href="http://engineeringnews.co.za/login.php?url=/article/zimbabwe-currency-crisis-robs-bell-of-record-year-2019-03-18&amp;functionality=1" class="save-article-link" style="color:#000000;">SAVE THIS ARTICLE</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a style="color:#000000;">EMAIL THIS ARTICLE</a> </p> <p class="sml" id="font_size_tool_container" style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;font-size:0.7em;text-transform:uppercase;"> FONT SIZE:&nbsp;<a class="decrease-font-size-button" style="color:#FF2629;display:inline-block;border:1px solid #FF2629;line-height:1.5em;font-size:1.5em;height:1.5em;width:1.5em;text-align:center;outline:none 0px;margin-left:0.5em;border-radius:5px 0px 0px 5px;">-</a><a class="increase-font-size-button" style="color:#FFFFFF;display:inline-block;border-top:1px solid #FF2629;border-right:1px solid #FF2629;border-bottom:1px solid #FF2629;border-left:none;border-image:initial;line-height:1.5em;font-size:1.5em;height:1.5em;width:1.5em;text-align:center;outline:none 0px;border-radius:0px 5px 5px 0px;background-color:#FF2629;">+</a> </p> </div> <div class="clearfix" style="clear:both;"> </div> </div> </div> <div class="content" style="width:38.125em;margin:0px auto;color:#111111;font-family:Tahoma, Geneva, sans-serif;font-size:16px;white-space:normal;background-color:#FFFFFF;"> <div id="article_content_container" style="padding:0px 30px;font-family:Georgia, serif;font-size:1.3em;letter-spacing:-0.2px;word-spacing:-0.5px;line-height:1.5em;"> <div style="margin-bottom:1em;"> </div> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> A new currency regime in Zimbabwe robbed Bell Equipment of a record financial year, giving the company a R87.4-million “ankle-tap that went straight to the bottom line”, said CEO<strong>Leon Goosen</strong>&nbsp;on Monday. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “It happened right at the end of the year. It’s incredibly sad.” </p> <div class="article-advert-container" style="margin-bottom:1em;background-color:#EAEDED;text-align:center;padding:0.5em 0.1em 1.2em;"> <div class="article-advert-container-text" style="text-transform:uppercase;color:#ADB3B3;text-align:left;display:inline-block;font-family:Tahoma, Geneva, sans-serif;font-size:0.5em;"> <ins data-revive-zoneid="420" data-revive-target="_blank" data-revive-block="1" data-revive-id="25c6ae227b1e2ab7d18795779ec68758"> </ins> </div> </div> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Bell Equipment on Monday reported a 10% increase in revenue for the financial year ended December 31, to R7.5-billion, compared with the previous financial year.<br /> Profit after tax at the equipment manufacturer moved up 1.6%, to R276.4-million. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Despite the substantial devaluation of its RTGS-dollar denominated monetary assets and liabilities in Zimbabwe, Bell Equipment would keep on doing business in South Africa’s neighbour, noted Goosen. </p> <div class="article-advert-container" style="margin-bottom:1em;background-color:#EAEDED;text-align:center;padding:0.5em 0.1em 1.2em;"> <div class="article-advert-container-text" style="text-transform:uppercase;color:#ADB3B3;text-align:left;display:inline-block;font-family:Tahoma, Geneva, sans-serif;font-size:0.5em;"> ADVERTISEMENT<br /> <ins data-revive-zoneid="647" data-revive-target="_blank" data-revive-block="1" data-revive-id="25c6ae227b1e2ab7d18795779ec68758"> </ins> </div> </div> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “It’s been a good market for us up to now.” </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Another factor eating into Bell’s profitability is load-shedding. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Goosen told&nbsp;<em>Engineering News Online</em>&nbsp;that load-shedding was costing the company’s Richards Bay plant between R2-million and R5-million a month. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “We have to move shifts around; buy diesel for the generators. South Africa cannot afford this – not if we want to be internationally competitive.” </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Goosen also lamented the depressed state of the local construction and mining industries. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “Our yard in Johannesburg is full of equipment meant for road construction, but there is very little activity in this market. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “Coal seems to be doing okay, but the remaining mining sectors are not doing well. We hope for more certainty after the general elections in May.” </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> The European and US markets managed to offset poor local conditions. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “Most offshore target markets for our articulated dump trucks (ADTs) – Europe, the US and South-East Asia – enjoyed good economic performance in the past year,” said Goosen. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “In the US, the world’s largest ADT market, residential development is driving current demand, where our ADTs are used for the provision of bulk earthworks. Demand also improved in Canada thanks to more stable commodity prices.” </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Goosen said ongoing infrastructure projects in Europe were also increasing demand for the group’s ADTs. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “However, we are mindful of the potential impact Brexit negotiations may have on this market.” </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> During 2018 Bell opened an American Logistics Centre in North Carolina, in the US, to better serve its customers in the region and to support the aftermarket requirements necessitated by the increased uptake of its products in the US. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Following the completion of the new European Logistics Centre in Alsfeld, Germany in 2017, the group started the second phase expansion of its factory in Eisenach-Kindel in mid-2018. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> The facility is scheduled for completion in the third quarter of 2019. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Given more buoyant global conditions, the board took a strategic decision to increase production at all manufacturing sites, as well as to up aftermarket working capital to respond more rapidly to higher demand, said Goosen. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Looking ahead, he said Bell Equipment would continue its focus on research and development, with a new series truck prototype due in the second quarter of 2019. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> An extensive product upgrade for the small ADT truck range will also be launched at the end of the year. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Locally, the uptake of the Kamaz range of Russian heavy-duty trucks in the struggling Southern African mining and construction industries was slower than anticipated, added Goosen, with plans for the localisation and production of these trucks in Richards Bay delayed until market demand made this investment more feasible. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Bell is investigating other applications for the product to make faster headway in this competitive market. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> “Kamaz is pitched somewhere between the premium and low-cost Chinese truck ranges. We are seeing a lot of clients move to lower-cost Chinese products,” said Goosen. </p> <p style="padding:0px 0px 1.5em;margin-top:0px;margin-bottom:0px;"> Bell is also looking at a third empowerment transaction that will allow customers to “maximise procurement spend when purchasing from Bell Equipment Sales South Africa”. </p> </div> </div>