While Bell Equipment Group Financial Director, Karen van Haght has described 2012 as a “challenging year” for the South African OEM, the company has made good progress in key strategic areas and is upbeat about prospects for 2013.

Addressing analysts at the company’s Richards Bay factory van Haght said tough trading conditions globally and uncertainty in the South African mining sector, particularly in the second half of the year, was largely responsible for the modest sales growth of 12% from R5 billion to R5,67 billion.This in turn impacted onearnings per share, which dropped 18% from R2,90 to R2,37.

However, explaining an 11% increase in total expenses, she said that this included investment in infrastructure, particularly in the company’s African operationsin the areas of service, parts and technical support. “We see this as an investment in the future to support machines that will be sold into the area as well as to support the large population of machines already sold into that territory. It reflects the confidence we have in the African region.”

Group chief executive, Gary Bell added the company had succeeded in reducing working capital and better matching production to market demand, thereby improving the re

action time and flexibility of its production facilities.

“We’re going into 2013 with a much healthier order book,” he continued, highlighting Russia, Africa and North America as targeted growth points.

The company is particularly upbeat about re-entering the North American and Canadian markets following changes to their partnership with John Deere. Ranked among the top three largest markets for Articulated Dump Trucks in the world, the company is expecting significant growth from these two new markets in 2013.

“Eight or nine years ago North America represented a sizable portion of our business, so we are expecting to be able to grow our business there over the next few years,” said Bell.

Initial market reaction has exceeded the company’s conservative expectations for 2013 and will see the company increase its production capacity at its German facility for a limited period over the next few months to meet market demand.

Outlining other strategic plans, Bell commercial director, Leon Goosen said that Indonesia is currently the second largest ADT market in the world and Bell would be looking to take part in that market through its existing strategic alliance with Hitachi, which distributes Bell ADTs in the Australasia region.

Looking at opportunities in the Southern Africa reg

ion he said that Bell Equipment had recently entered into a distribution agreement with Finlay to sell its range of crusher and screens into Southern Africa, to further expand and diversify the Bell range of products. Bell is also looking to grow its Liebherr product range to provide more machines to the mining industry.

Meanwhile Bell said that the company was well positioned for future infrastructure development in South Africa, with the best range and best coverage in the country, and was “looking forward to more activity from this sector”.

After the presentation analysts were given the opportunity to visit the Bell test track to see the company’s new E-series ADT and a concept 60-ton ADT, which is being developed in response to specificcustomer needs.