Johannesburg - Cargo Carriers (CRG), which provides logistics, transport and related IT solutions, on Monday reported a 13.3% increase in headline earnings per share from 55.3c to 62.7c for the six months ended August.

The company said the increase in the current difficult operating environment where volumes have decreased between 20% and 30% is most pleasing.

"Revenue and operating and administration costs for the period have decreased by 10.1% and 10.9% respectively while profit from operating activities has increased by 0.7%. The decrease in revenue during the reporting period is primarily attributed to the downturn experienced in the global and local economy which has filtered through to our customers," the company stated.

Volumes within the industrial sector, particularly the steel business, decreased significantly thereby contributing to lowering the group's revenue, the company added.

"The dramatic decrease in the fuel price during the period has been passed on to customers resulting in lower revenue but also lower operating cost. The reduction in finance costs during the period is attributed to the decrease in interest rates, disposal of non-operating assets and a more efficient cash management strategy."

Looking ahead, Cargo Carriers said the growth in volumes in the industrial segment, particularly steel, has started to materialise and this should result in increased earnings.

"The agricultural segment, excluding the Zimbabwe operations, has once again been adversely affected by external factors beyond the control of management, such as unfavourable weather patterns. The full year contribution from this segment is not expected to increase.

"The company's favourable gearing and strong cash position, especially in the current economic climate, presents an ideal opportunity for strategic acquisitions. The company is actively seeking potential acquisitions which would increase the revenue streams and profitability of the group, whilst still maintaining our culture of integrity and high levels of service delivery to customers," the company added.

An interim dividend of 9.5c per share has been declared, which is unchanged from 2008.