Categories: Stories

Powerspeed in $2.5 billion profit despite poor trading conditions

Though lamenting poor trading conditions Powerspeed Electrical still managed a $2.5 billion net profit for the year ending September, nearly a tenfold increase from the $269.3 million it made in 2002.

Its sales improved from $3.2 billion to $13.8 billion with operating income at $3.6 billion, up from $590 million.

The company says Clipsal Zimbabwe, its joint venture in Ruwa, had an excellent year with improved manufacturing efficiency and margins.

Powerspeed manufacturing is failing to meet the demand for electric motors while the demand for fans is almost non-existent.

The company says because of serious deindustrialisation in the country, it is focusing on niche market products.

The trading division performed reasonably well with a new branch being opened in Masvingo in July.

There was also an improvement in the bulk distribution operation which had resulted in a significant improvement in turnover. The company got back some of the customers it had lost.

The fortunes of the Zambian operation have improved though it is not yet profitable. A second branch was opened in Lusaka and will form the new base for the Zambian operations, taking over from Kitwe.

(11 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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