COMPANY NEWS MORT’S DOCK ACCOUNTS

Press, Volume XCIV, Issue 28150, 13 December 1956, Page 19

COMPANY NEWS MORT’S DOCK ACCOUNTS

FIRST LOSS FOR 57 YEARS REPORTED

Mort’s Dock and Engineering Co.. Ltd.. Sydney, shipbuilders and engineers, incurred its first loss in 57 years of business and passed its dividend for the first time in 21 years in the year ended June 30. The net loss of £ 175.644 compares with net profits of £76,576 and £94.054 in 1954-55 and 1953-54 respectively. The result was reached after depreciation provision of £25,000 (the same as in 1955 >. The company last passed its dividend in the 1934-35 year. Payment last year was 7 per cent., absorbing £68.253. The directors state that a very big loss of £242.000 was incurred on the construction of the 6500-ton motor vessel Baralga, which W'as delivered in March. 1956. In addition, there was a loss of £35,000 on the motor vessel Boonaroo, delivered in October, 1953. "At the time of tendering in 1948,” states thes report, "the company had reason to believe that it would be able to construct these ships within the required time and at a price to ensure a reasonable profit on each ship. Unfortunately, the unprecedented inflation and demand for labour were not, and could not have been, foreseen by either party.” The report adds that the contracts stipulated that only award wages should be paid. At the date of the contract, the company had a work force of 2000, but many were enticed away by payments of up to £3 a week above the award, and the work force dwindled to 800. In spite of overtime, the ships took twice as long to build as they should have, and the Australian Shipbuilding Board imposed a fine of £28,800 for late delivery of the vessels.