N.Z. Forest Prods. £l.4m Net Profit

Press, Volume CI, Issue 29907, 22 August 1962, Page 17

N.Z. Forest Prods. £l.4m Net Profit

(New Zealand Press Association)

AUCKLAND. August 21. Consolidated net profit of New Zealand Forest Products. Ltd., amounted to £1.402.146 in the year to March 31. This figure includes a full year of operations by Whakatane Board Mills, Ltd., which is now a fully-owned subsidiary. In the previous year of New Zealand Forest Products on its own had passed the £lm mark for the first time with a net profit of £1.016.713. Latest result was struck after providing £1.196,090 for taxation, compared with £818.404 for the parent company in 1960-61. and £1,269,089 for depreciation, compared with £886.652. Ordinary dividend has been maintained at 8 per cent. It will absorb £659.538. against £416.338 last year. Preference payment will take £159,944 (£116.819) so that the total distribution is £619.482.

Announcing the year's result. the chairman and managing director (Sir David Henry) said that total sales by the company were a record although the turn-over of some departments was reduced.

Trade prospects for the coming year were clouded by the continued necessity for tight control of credit by the Government and for restrictions imposed to ease the drain on overseas funds, coupled with the general air of uncertainty regarding the outcome of the Common Market discussions.

Sir David Henry said that in these circumstances the company must, more than ever before, increase manufacturing efficiency and equip itself adequately to move into export markets with greater enterprise in the future.

He said much thought and energy had been devoted to that end and useful progress made.

The extension to the pulp mill at Kinleith had been completed, he continued. It had a potential output of 100.000 tons a year. Exports of pulp to Australia had increased with improved trading conditions in that country. The second wallboard mill had been completed. The capacity of the two board mills at Penrose exceeded the New Zealand demand and export markets had been secured and were being developed. The third paper machine at Kinleith was expected to begin production in September. It would produce a large tonnage of fine printing and writing papers which were at present imported and so in due course would save about £lm a year in overseas exchange. The capacity of the first cardboard machine at Whakatane would be increased when equipment arrived from overseas.

Business Personal

Sir Walter G. Duncan has retired as a director of the Broken Hill Proprietary Company, Ltd., and its subsidiaries. Australian Iron and Steel Pty.. Ltd., Australian Wire Industries Pty, Ltd . BH P By Products Pty.. Ltd., and Tasmanian Electro Metallurgical Company Pty., Ltd. He has been a B.H.P director for 40 years.

New Listing.—The ordinar.v and preference shares of the Hawke's Bay Motor Company. Ltd. have been officially listed by the Stock Exchange Association. The company, with headquarters at Napier, is a passenger transport operator and rental vehicle proprietor.—(P.A.)