Strike action limits profit at Super Group

15 February 2013

Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily

17 February 2013 | Adam Leach

Strike action by lorry drivers in South Africa meant profits at the supply chain division of logistics and fleet company Super Group were 5 per cent lower than expected, according to the company’s interim results.

In its results for the six months to the end of 31 December 2012 published this week, the South African business reported a 27.7 per cent increase in group-wide profits to R2.5 billion ($284 million). The supply chain division of the company, which incorporates Supply Chain South Africa and African Logistics, also reported an increase in profit for the period, up from R126 million ($14.3 million) in the same period of 2011 to R172 million ($19.5 million).

However, this rise was limited as a result of strike action called by the Road Freight Association, which the company said had affected profits by 5 per cent. In September last year 20,000 truck drivers stopped work in protest at what they saw as unfairly low wages across the logistics industry.

“Disruptions to Super Group’s supply chain business as a result of the Road Freight Association strike in September 2012 resulted in a 5 per cent reduction in divisional revenue and profit for the period,” the results said.

The group also identified lower than expected mining activity in the Democratic Republic of Congo, also partly down to labour unrest, which caused further disruptions that reduced profits.

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE