COMPANY PROFITS

Auckland Star, Volume LXXVI, Issue 1, 2 January 1945, Page 3

COMPANY PROFITS

FURTHER RISE IN 1944 TRENDS IN AUSTRALIA O.C. SYDNEY, Dec. 27. Company net profits reported during 1044 show a further upward trend. Dividends also were higher, but to a lesser extent. Aggregate profits over a wide range were equivalent to 6.2 per cent of shareholders' funds in 1944, compared with 6 per cent in 1943. The corresponding dividends represented 5 per cent, against 4.9 per cent last- year. . , . .. - Profits have practically regained the level of three years ago. A recovery in 1943 was largely attributable to lighter provision for taxation. Indications in 1944 were that tax provision was at least as heavy as in 1941-42 and that profits before tax reached the highest levels of recent years. This conclusion is reached by the Commonwealth Bank Bulletin, based on results of 92 companies, with aggregate shareholders' funds of £78,100,000, which have disclosed the amounts provided for taxation. These companies disclosed profits before taxation of 13.2 per cent in 1943-44. compared with 11.9 per cent in each of the two preceding years. Provision for taxes reduced this figure to 6.4 per cent in 1943-44, compared with 5.8 per cent in 1942-43 and 5.2 per cent in 1941-42.

PROFITS AND DIVIDENDS PERCENTAGE OP SHAREHOLDERS' FUNDS Profit Dividend . . 1943 1944 1943 1944 P.C. P.C. P.O. P.C Manufacturing— Food, drink and tobacco 7.S 1.1 6.1 6.* Bricks. tiles. glass, cement, timber 4.5 4.7 4.3 i-2 M Co l al! _ metale 6.9 6.5 6.1 6.0 Distribution— . Wholesale -. '•» ' J-f f-J 5.6 Retail 6.2 6.6 5.3 5.3 6.0 6.3 4.9 4.8 Shipping 1.9 6.0 4.5 4.3 Newspapers 6.7 7.0 5.9 5.8 - . 4.6 5.0 3.8 3.9 Trustee, Insurance .... 7.6 7.8 4.5 j.6 Grand Total* 6.0 6.2 4.9 5.0 • Includes companies in other groups not Bhown.