JSE-listed Barloworld’s Southern African order book increased to R5.7-billion in the quarter ended December 2012, up 7.5% on the September quarter figures, the group reported in a trading update on Wednesday.

The industrial group pointed out that the order book was boosted by a substantial order for mining products from Swakop Uranium.

The order – due for delivery in 2014 and 2015 – had more than compensated for the reduction in the traditional Cat firm order book, owing to mining-sector challenges in South Africa leading to a slowdown in the group’s traditional business, particularly in contract mining.

Trading for the first quarter of the 2013 financial year had shown solid progress across most business units, with trading outside of South Africa showing positive results on the back of continued mining and infrastructure spending.

The group also reported incremental revenues from the recently acquired Extended Mining Product Range.

Working capital had increased in the quarter, chiefly as a result of inventory deliveries from Barloworld’s principals, contributing to higher net debt levels.

“We anticipate working capital to remain high until March in advance of strong machine deliveries in the second half. Net debt levels are expected to remain within our target ranges at the half-year and full-year,” the group said.

Meanwhile, the automotive and logistics division was trading ahead of the previous year. 

Car rental volumes were improving, while rates remained stable amid the company’s motor retail operations in Southern Africa experiencing higher volumes and achieving improved overall margins.

The company’s logistics operations in Southern Africa were performing ahead of the prior year, despite the effects of the transport sector strikes in October.

Further, the international logistics businesses remained stable, with continued pressure on volumes and freight rates.

In Australia, automotive operations performed in line with the prior year, while fleet services continued to trade well. 

Trading in Russia continued its positive trend, with the $96-million firm order book at December up on September levels and dominated by mining orders.

While economic conditions in Iberia remained challenging, the company noted that the tough restructuring measures implemented over the past few years had significantly reduced the cost base.

Trading in the remaining European and Southern African operations had been slightly weaker than the prior period.