COMMERCIAL C.S.R. Profit Will Be Down Slightly

Press, Volume CVI, Issue 31255, 30 December 1966, Page 12

COMMERCIAL C.S.R. Profit Will Be Down Slightly

(N.Z. Press Association —Copyright; SYDNEY, December 29. Group profit of the Colonial Sugar Refining Company, Ltd., will be lower in the year to March 31 than in 1965-66, the general manager (Sir James Vernon) says in his interim report

The reduction should not, however, be large, he adds. Sir James Vernon recalls that tn the directors’ report issued last July it was said that some reduction in profit was probable this year, unless the world sugar price rose more quickly than then seemed likely. The price has not risen, he says.

Sir James Vernon makes reference to C.SJL’s capital requirements which were recently reviewed by directors taking into account the iron ore and alumina projects as well as of the foreseeable demands of existing activities. Requirements

On present indications, he says, the funds being generated within the company, after payment of dividend, should cover these requirements.

It will be realised, however, that it is not possible to forecast with assurance more than a year or two ahead, and that a change in circumstances or new developments could alter the position any time.

The operating companies in the iron ore and alumina projects will raise loan moneys directly. Cane Crop

In his report. Sir James Vernon says the young cane for the 1966 crop at the group’s Queensland mills, which had been severely checked by drought, substantially recovered later. It is now expected that those mills will make 384,000 tons of raw sugar, compared with the previous record of 354,000 tons in 1965. In New South Wales, good growing conditions and additional cane from new areas at the three mills have combined to produce a record crop.

This is now estimated at 135,000 tons of raw sugar nearly 50 per cent greater than the previous record in 1964 and 68,000 tons more than in 1965. Mount Newman In regard to the Mount Newman iron ore venture, in which C.S.R. has a 30 per eent interest. Sir James Vernon confirms that 8.H.P., which also has a 30 per cent share, will assume management of the construction and early operation of the project

The Amax group, which owns the remaining 40 per cent, has responsibility for export sales promotion. The agreements between the three companies are now being drawn up in detailed legal form, he adds.