JSE-listed Bell Equipment (Bell), a leading global manufacturer, distributor, and exporter of a wide range of heavy equipment for the construction, mining, quarrying, sugar, and forestry industries, today released final results for the year ended
31 December 2022.
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Financial review
The group improved significantly on the 2021 results, with profit after tax increasing by 63% to R478,9 million (2021: R294,3 million). Strong market conditions resulted in all regions surpassing the previous year’s volumes. Group sales were up by 28% on 2021 largely due to an improvement in the supply chain in the last quarter that meant that production could be caught up and products invoiced and delivered to customers by year end. Higher production volumes resulted in an increase in labour and overheads recovered, positively impacting the bottom line. Notwithstanding freight and load shedding expenses already mentioned, other notable expenses include increased electricity charges due to higher production and electricity tariff increases. Group inventory increased by R1,1 billion (31%) from December 2021 to R4,8 billion at the end of 2022 reflecting the high level of actual and planned production. Recognising the improvement in the financial results, the board has declared a gross final dividend of 90 cents per ordinary share.Operational update and product development
South Africa experienced a positive year, with favourable commodity prices fuelling demand in the mining industry. “The JCB product line is proving to be extremely complementary to the South African offering. The market has reacted positively to the group taking over the distribution and support for this great product range,” said Goosen, adding that in Bell’s major international markets – the US and UK – demand was strong despite high levels of inflation, increased interest rates and soaring energy costs. Australia and New Zealand also maintained a high demand for ADTs.“Our OEM business was restructured into three distinct divisions: Mining and Construction, Forestry and Agriculture, and Underground Mining to provide a more dedicated focus on product lines, distribution, and support going forward. Pleasingly, we have also started distributing JCB Agriculture alongside the Bell Forestry and Agriculture range and over a dozen independent dealers have been appointed as part of our strategy to grow our exposure in these industries through increased products and improved service,” he said.
He added that underground mining has been identified as another opportunity for growth. “The two underground articulated dump truck models and a rock scaler have been well accepted in existing African markets for their built-in levels of safety, use of the latest technology and economical productivity. This range will be expanded to include a 6-ton low profile Load Haul Dump (LHD) loader.” Goosen was proud to elaborate on innovation at Bell, saying that four years after commencing extensive testing, the group’s autonomous technology is now at the adoption stage with customers in the UK, South America, and Australia set to introduce autonomous Bell ADTs on their worksites during 2023. “We currently have two approved service providers, xtonomy, based in Europe, and Pronto AI in the US, both of which can work with Bell customers from anywhere in the world. A third supplier has recently been engaged and the group will begin testing this system during 2023.” In addition, Goosen announced that the group has decided to enter the global motorised grader market. Final testing and refinement on its first generation of motor graders are underway, with production set to begin as early as Q4 2024. This is a significant step in the group’s strategy to grow its product development IP, increase its manufactured product offering, and expand global markets. “Motor graders complement the group’s flagship ADT product as a core earthmoving product. There are several shared global markets and dealer distribution channels. Significant design complexity as well as developing to the needs of the operator are key for this product line and the group has demonstrated ability to achieve these,” he said. Three base machines will initially be offered, each with the option of a four- or six-wheel drive configuration. The G140 will cater for maintenance and light construction tasks, while the G160, with its increased power and performance, is designed to handle heavy construction applications. The G200 is positioned as an entry-level machine for the mining industry.![](https://infrastructurenews.co.za/wp-content/uploads/2023/04/Toolbox-Talk-Kamoa-Copper-2022_edit_web-1024x604.jpg)