Construction and mining equipment maker Bell has reported a 12 percent increase in revenue for 2012, up to R5.67 billion from the previous year's R5 billion.
Profit for the year however fell to R242.9 million, down from 2011's R296.8 million.
In a statement the heavy equipment manufacturer said 2012 had proved to be a "mixed year". It said the drop in profitability could be attributed to a number of factors and it bemoaned the increasing cost of doing business in South Africa.
"The rising costs of labour, electricity and fuel impact heavily on Bell's competitiveness. Fortunately, however, this was mitigated to some extent by the recent depreciation of our currency."
Africa remains Bell Equipment's main source of revenue and focus area. The region continued to contribute the lion's share of the company's business and in 2012 sales on this continent constituted around 73 percent of group sales.
Looking forward, Bell expected a better 2013.
"Bell has a growing order book which bodes well for the first half of 2013," it said. "There are clearly obstacles in the face of the Eurozone turnaround but it appears that many economies are showing signs of growth. Certainly, within South Africa, the projected increase in infrastructure spend should have a positive impact upon Bell, particularly as its range of quality products fits well into the needs of the National Development Plan."
Image: © Bell Equipment
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