DIFFICULTIES OF A.M.I.

Press, Volume C, Issue 29604, 29 August 1961, Page 19

DIFFICULTIES OF A.M.I.

Heavy Losses In Six Months

Australian Motor Industries, Ltd, Melbourne, maker of Standard and Triumph vehicles, reports that the severe fall in sales in Australia has brought about the greatest difficulties in carrying out operations of toe company. Heavy losses were incurred in the period from November, 1960, to June, 1961, states' a report to Shareholders from the chairman (Mr S. W. Byrne). “Your board has taken all steps that seem to 'it possible in reorganisation so as to reduce the cost of operations and to maintain the liquidity of the group and has. for this purpose, recently made reductions in the price of its products,” the report states. Liquidation Plans “Its plans for liquidation of surplus stocks (which involved a heavy writing down) are operating very successfully, and it is anticipated that, before the end of 1961, the- liquid position of toe group will be restored. “In the. circumstances Which have occurred, your board has deferred consideration and payment of the final preference dividend for the year ended June 30, 1961. “In the opinion of the board, your company and toe motor car industry generally will face considerable difficulties for some time to come and plans are being considered for the future operations of the group and the profitable use of its funds. “In the course of reorganisation, the interests of the group in the partly owned company Mercedes - Benz (Australia), Pty, Ltd.—have been disposed of to DaimlerBenz A.G. of Germany at a satisfactory figure."