Salary and wage cuts ring positive for Bell

Materials handling equipment distributor Bell Equipment announced a significant improvement in half-year results - mainly as a result of a R82-million in reduction in salaries and wages.

Announcing its results yesterday, Bell said: "Management is to be commended for having implemented many cost-saving measures, though it must be recognised that, regrettably, this has led to the loss of numerous jobs.

"We will continue to reduce costs wherever possible, but remain mindful of the risks of damaging the very fabric of our business by being overly aggressive in the cost-cutting measures."

The company said the past 18 months had been among the most testing economic times in living memory, and Bell suffered the dramatic effects of the meltdown like most other global organisations.

The balance sheet of the group is vastly improved compared with a year ago. Most of this improvement stems from a reduction in inventory amounting to R760-million over the past 12 months.

ýEarnings per share were 9c compared with a loss of 190c a year ago.

Profit for the period amounted to R10.7-million after a loss of R186.9-million a year ago.

Revenue grew to R1.502-billion from R1.375-billion a year earlier, and operating profit was R37.1-million as against a loss of R153.2-million last year.