Company News UNION STEAM SHIP YEAR

Press, Volume XCIX, Issue 29108, 21 January 1960, Page 17

Company News UNION STEAM SHIP YEAR

Sharp Drop In

Profit

Net consolidated profit of the Union Steam Ship Company of New Zealand, Ltd., fell to nearly one quarter of the 1957-58 figure in the year ended September 30, last year. The drop in the parent company’s profit was nearly twothirds.

The parent company’s profit was £377,170, compared with £1,042,009. In addition, net profits of subsidiaries attributable to Union Steam Ship shareholders and excluded from the parent company’s profit was £19,672, compared with £409,323. Higher Depreciation

The parent company profit was reached after provision of £1,182,271 (up £121,046) for depreciation and £243,398 (down £318,905) for taxation. Dividends are steady at 5i per cent, preference and 8 per cent, ordinary. All the ordinary shares

are held by the P. and O. Company. The preference requirement is £55,000 and the ordinary requirement £320,000. No transfer is made to reserves this year; last year capital reserves received £650,000. Parent company profit exceeds appropriations by £2170, and carry-forward is raised to £751,170. The parent company’s balance sheet shows shareholders’ funds slightly higher at £16.881,034. Current liabilities rose from £4,013,714 to £4.119,260. Fixed assets from £15,889.435 to £16.040,418, investments from £17,954.693 to £18,105.956 and current assets from £3,068,358 to £3,081,838. Effect of Import Control The chairman (Mr H. H. Dobie) says the full effect of import control was reflected in the reduced earnings and profit. Cargoes fell away, earnings suffered and wages of maritime unions were increased in March. “So serious was the reduction in cargoes that the company was required to lay up vessels in rotation and for some periods there were as many as 16 out of commission. While these vessels were unemployed, apart from the cost of up-keep, no depreciation was earned, making a severe drain on the company’s resources."