BURNS, PHILP AND COLES

Press, Volume XCIII, Issue 27986, 5 June 1956, Page 15

BURNS, PHILP AND COLES

COMPANY NEWS

AGREEMENT ON PENNEY’S DEAL REPORTED

Melbourne sources quoted by the “Australian Financial Review” say that agreement has been reached between Burns, Philp and Company, Ltd., and G. J. Coles and Company, Ltd., for the takeover of Peijneys, Ltd., the retail chain-store owned by Burns, Philp. Details are still to be revealed. “Irrespective of how Coles finances the deal, the absorption of 48 stores is a big mouthful, even for Coles,” says the paper. [Last week the chairman of Burns. Philp (Mr James Burns) said the merger of Penneys with Coles might take place, but it was still in course of negotiation. “There are a good many problems to be settled,” Mr Burns said.

“However, your directors are in favour of a merger if a satisfactory understanding can be arrived at; briefly, it would represent the transfer of our investment interest from Penneys to Coles.”]

PATONS AND BALDWINS

Patons and Baldwins (Aust.), Ltd. Melbourne, worsted and woollen yarn manufacturer, achieved record earnings in the year to April 28, and is lifting its ordinary dividend from 6 per cent, to 7£ per cent, by the inclusion of a 1| per cent, bonus. The company has paid 6 per cent, for three years to April 30. USS, since it was converted to a public basis in July, 1951.

A preliminary sta + ement discloses net profit of £421.011 after £313,000 tax, compared with £162,559 previously. after £102.620 tax. The profit increase follows a substantial increase in turnover, directors say. It reflects the increasing popularity of the company’s products, greater efficiency and economies in operations and recovery from the write-down of stocks at the end of the previous financial year, they add. The increased ordinary dividefid requires £112,500 (previously £90.000), while the preferences absorb a further £37,000. General reserve receives £200,000, bringing it to £600,000.

Frozen Products.—Proposals to double authorised capital by the creation of 400.000 ordinary shares of 5s each have been approved by shareholders. The transfer books will be closed on Thursday and Friday this week.

Dental and Medical.—An unchanged annual dividend of 7J per cent., payable on June 22, is recommended.

SHAREMARKET INDICES

Comparative indices are:— New York.—Dow Jones:

London—Financial Times: Indus, ord. (1936 equals 100); Govt, and gold (1829 equals 100):

WAGE SURVEY

MARGIN ABOVE AWARD RATES INCREASED BUILDING, ENGINEERING INDUSTRIES A survey of ruling rates of wages in the building and engineering industries shows that in nine out of 11 occupations the margins above award rates are higher in February of this year than in October, 1954. The Department of Labour recently carried out a further sample survey of ruling rates of wages in a limited numbfer of occupations in eight centres —Auckland, Hamilton, Wanganui. Lower Hutt, Wellington, Christchurch. Dunedin, and Invercargill. A similar survey was carried out in October, 1954. In each survey a 10 per cent, sample was taken in the same nine trade occupations and two labourers’ occupations in the engineering and building industries. Both the amount and percentage of the margins above award rates were higher in nine of the 11 occupations surveyed in February, 1956, than in October, 1954. For the nine trade occupations combined, the margin paid above award rates was 8.3 d an hour, or almost 12 per cent. This compared with 6d an hour, or 9 per cent, in the October. 1954, survey. For the two labourers occupations combined the margin increased from 5.4 d an hour, or almost 9 per cent.. to 7.3 d an hour, or 11.6 per cent.— an increased margin of nearly 2d an hour.

Shares Rails. Indus. sold. May 31 .. 159.87 424.86 1,990,000 June 30 .. 160.95 451.38 2,370,000 July 29 .. 158.19 465.85 2,450,000 August 31 .. 157.14 468.18 1,850.000 Sept. 30 .. 155.05 466.62 2,140,000 October 3 .. 149.53 454.87 1,800,000 Nov. 30 .. 166.65 483.26 2,900,000 Dec. 30 .. 163.29 488.40 2,820,000 Jan. 30 .. 155.10 467.50 1.830.000 Feb. 29 .. 159.62 483.65 3,900,000 March 29 .. 171.82 511.79 3,480,000 April 30 .. 176.63 516.12 2,730,000 May 29 .. 165.72 477.68 2,430,000 May 30 .. Memorial Dav holiday. May 31 .. 165.10 478.05 2,020,000 June 1 . . 164.86 480.63 1,440,000

Indus, ord. Govt Gold May 31 . . 197.0 95.30 84.41 June 30 .. 214.3 94.06 85.82 July 29 .. 214.8 92.60 84.10 August 31 .. 194.1 88.27 86.48 Sept. 30 ». 191.0 89.72 84.68 October 31 191.1 91.64 79.03 Nov. 30 .. 190.3 90.78 76.10 Dec. 12 .. 198.1 90.53 *87.1 Jan. 4 .. 203.4 90.16 f86.7 Jan. 31 .. 186.4 88.17 82.5 Feb. 28 .. 177.9 88.15 90.6 March 29 .. 180.1 86.50 85.5 April 30 .. 190.7 87.80 81 4 May 30 .. 183.7 85.74 77.8 May 31 .. 181.1 85.39 78.1 June 1 .. 176.1 85.17 78.7 *New series begins. tEx -dividend (equals 88.1 cum div.).

Some of the detailed figures resulting from the survey are as follows:— Feb., 1956 Oct., 1954 Occupation Above Above p.c. p.c. Fitter or fitter-turner 11.3 8.0 Sheetmetal worker Moulder (exc. machine 10.4 7.8 moulder) 11.7 10.4 Welder (1st class) .. 12.0 7.3 Boilermaker 16.0 10.5 Blacksmith 7.8 13.0 Carpenter 10.7 8.6 Plumber 17.5 10.0 Electrician 12.0 12.8 Nine trade occupations .. 11.9 9.0 Engineer’s labourer Builder’s or sub19.4 ,12.5 contractor’s labourer 8.3 6.5 Two labourers’ occupations 11.6 8.96