FLETCHER PROFIT DOWN

Press, Volume CVI, Issue 31238, 9 December 1966, Page 21

FLETCHER PROFIT DOWN

Outlook Less Buoyant (N.Z. Prers Association) AUCKLAND, Dec. 8. A number of largely nonrecurring factors contributed to a reduction in earnings of Fletcher Holdings, Ltd., Auckland, by £18,969, or 4 per cent to £461,124 in the six months to September 30, says the managing director (Mr J. C. Fletcher) in the interim report. Compared with the first half of the previous year, turn-ove rincreased £720,850, or 3.5 per cent, to £21,136,369. The group’s activities in the South Island, which represent about a quarter of total business, have been more stable than those in the north. Non-recurring As the largely non-recur-ring factors Mr Fletcher mentions:— A higher than normal incidence of unprofitable construction contracts. The effects of a voluntary freezing of prices over a wide range of timber and timber products have been accentuated by the fact that timber has cost more to produce. Exceptionally heavy operating costs have been Incurred in starting up some new ventures. Cuts in import licences have directly reduced profits in some sectors of the company’s business. No Forecast Mr Fletcher makes no forecast for the full year, but repeats an earlier expectation that the previous buoyant conditions will not recur In the immeditae future, and that trading in the next two or three years is likely to be difficult and extremely competitive in many sectors. Sales of Butler Bros, in the South Island, where demand was sustained, increased more than 5 per cent, with profit also higher. Unlike the North, building permit trends and other indicators point to a continuation of the current level of activity 1 in all South Island areas, but some down turn can be expected, Mr Fletcher says.