Company News TASMAN PULP AND PAPER

Press, Volume XCIX, Issue 29145, 4 March 1960, Page 15

Company News TASMAN PULP AND PAPER

Sharp Drop In Profit

(New Zealand Press Association) AUCKLAND, March 3. Difficulties in newsprint production and a decline in prices for woodpulp caused net earnings of the Tasman Pulp and Paper Company. Ltd., to decline by £ Ift ,451 to £151,568 in the year ended October 31. Net sales increased by only 0.6 per cent, to £7,242,038 during the year, compared with an increase of 31.1 per cent to £7,201,194 in the previous year. Production of newsprint fell 2144 tons to 72,567 tons, but the output of sulphate pulp, after satisfying the demand of the newsprint machine, rose by 3422 tons to. 42,560 tons. Sawmill production expanded by 5.3 million board feet to a record of 45.6 million board feet. Production Difficulties In his report, the chairman of directors, Sir James Fletcher, says that difficulties in the early part of the financial year somewhat retarded production of newsprint. Output over the last few months, however, has been stabilised at substantially higher levels.

In spite of a continuing position of over-supply on world markets, the company again sold its full output of newsprint, says Sir James Fletcher. In addition, it sold 20.000 tons purchased from Albert E. Reed and Company, Ltd., in accordance with the agreement by that company to supply variable tonnages each year to supplement the Tasman production. Depreciation Down Net profit was reached after writing off £65,585 less for depreciation at £1,641,882 and providing £49,562 less for interest charges at £611,093. Gross operating profit declined by £230.546 to £2.344,053 while income from interest-was £7098 higher at £79,312. The latest result follows a net profit of £2sB.ol9—the first earned by the company—for the 1957-58 year. In the three years covering the establishment of the Kawerau mills net losses totalling £3,578,518 were incurred. The 1958-59 net profit has been used to reduce accumulated losses carried forward from £3,320,499 to £3,168,931.

Some wide changes are shown in the balance-sheet. Term liabilities were reduced from £13,050,123 to £12,891,087, while current liabilities were lowered from £1,184,222 to £918,179, largely as a result of a reduction from £491,617 to £181,981 in bank overdraft. A new item, “purchase of standing timber, £68,000,” appears among term liabilities. FixeA Assets Fixed assets were reduced from £13,567,567 to £12,511,403 and investments increased from £133,642 to £678,524 as a result of the appearance of a short term deposit of £500,000. A new item, “timber rights, £82,066,” appears under forest assets. Current assets increased from £1,970,852 to £2,128,197, with stocks rising from £1,466,264 to £1,511,980.

Consolidated net profit of the company and its subsidiaries, Kaingaroa Logging Company, Ltd., and Tasman Pulp and Paper (Sales) Pty., Ltd., Australia, declined by £116.213 to £155,248 in the year ended October 31 after writing off £89.883 less for depreciation at £1,770,846. Gross operating profit was reduced by £267,591 to £2,510,194 and income from interest was £11,829 higher at £38,707.

• Myer’s Half Year.—The Myer Emporium, Ltd., Melbourne, increased both sales and net profit in the half year ended January 31. Interim dividend of 6 2-3 per cent, unchanged, has been declared. Directors point out that this year's interim dividend will be paid on ordinary capital of £5,541,669.