Peak Output, But Profit Declines

Press, Volume CVI, Issue 31091, 21 June 1966, Page 19

Peak Output, But Profit Declines

(New Zealand Preet Association) AUCKLAND, June 20. A 73 per cent increase in depreciation, only partly offset by lower tax, reduced the consolidated net profit of Wilsons (N.Z.) Portland Cement, Auckland, by £40,255, or 11.2 per cent in the year to March 31. Production was at a record level.

The demand for cement in the Auckland Province continued to expand, the chairman, Mr H. M. Rogerson, says in the annual report. This was in spite of some restriction on building and certain Government contracts.

partly paid shares to onethird. Result represented an earning rate of 9.4 per cent on average shareholders’ funds and 17 per cent on average capital, compared with 13 per cent and 21.6 per cent last year. Both average funds and average capital were up sharply. The three-for-eight issue made last year at a premium of 5s a 10s share, involving a total of £900,000, and the heavy expenditure on additional plant were reflected in the balance sheet. Shareholders’ funds increased £1,026,426 to £3,774,598, including capital raised by £588,834 to £2,188,834. Unpaid calls at the balance date were £11,166.

Although heavy repairs reduced the production from the older plant, the new rotary kiln No. 6, which went into commission in January, helped boost total output by 5468 tons to 307,275 tons. Clinker However, only 1024 tons of clinker (partially manufactured cement) was available from other companies, against 8400 tons last year. As a result, sales edged down by 1908 tons to 308,299 tons. In addition, the company brought 18,346 tons into its territory from the South Island to avoid a shortage. This was distributed under a non-profit making pooling arrangement. In view of the heavy maintenance and dther charges absorbed, the directors- considered the financial results to be satisfactory, Mr Rogerson says. Gross profit Increased £21,052 to £991,882, while other income rose £5445 to £46,524. Depreciation Depreciation jumped £259,999 to £615,919, hut tax was reduced by £206,292 to £102,187. The investment allowance of £212,097 (last . year £35,705) resulted in a tax saving of £106,040. Steady 9 per cent dividend requires £162,094. New-issue shares fully paid by November 30 participate to two-thirds in the final dividend of 5 per cent and the