MONEY IN MOTORS.

Auckland Star, Volume LXIX, Issue 101, 2 May 1938, Page 4

MONEY IN MOTORS.

GENERAL MOTORS-HOLDENS. OVER A MILLION PROFIT. EQUALS 66 PER CEXT OX CAPITAL. A profit of £1,003,773, equivalent to 66 per tent on capital, is reported by General aiotors-Holdons, Ltd., Australia, for the year ended December 31. The profit, which is easily a record for the company, titatcw a Sydney journal, compares with £7-46,070 in 1036, and £673,000 in 1!>35. The profit for 1037, Which was struck after making full allowance for all trading expenses, places General Motore-lloldens, Ltd., among the very lew Australian companies to have recorded profile above £ 1.000.000.

After incurring ]ossee amounting to nearly £570.000 in the two years and a half to December 31, 1932, it has enjoyed a remarkable increase in profits in the Jaet fiv? yeare, Xo cash ordinary dividend is being paid for 1937, whereas 40 per cent was paid for 1030, and '.!o per cent for the preceding year. Xea. !y all the ordinary capital w held by the General Motor* Corporation of America, and, instead of receiving a cash dividend for ]!),'J7, ordinary nhureholdens have taken up 754,200 sliaree. Because of increased business, the directors state that it was considered advisable to increase the capital. This wae done at the beginning of the year by the creation of 7151,000 ordinary eliiaree of £1 each, thus raising the authorised capital to £2.311.000. The whole of the issue, hae been effected by the capitalisation of undivided profits'. Thus, all the authorised capital is now fully paid. Preference capital amounts to £561,000, and most of this is hold in Australia. The yearly (i per cent charge of £33,600 on thie stock in covered nearly 30 times by the profit for "H)37.