DUNLOP N.Z. PROGRESS

Press, Volume CVI, Issue 31317, 13 March 1967, Page 17

DUNLOP N.Z. PROGRESS

Rise In Sales Of Retreads

Losses caused by the labour troubles at Dunlop New Zealand, Ltd., Lower Hutt, during the year to Decemben3l, were partly offset by continued progress in retreading where sales rose 40 per cent, says the managing director (Mr A. Hamilton) in his annual report. As announced, profit slumped 37.3 per cent, or £121,303, to £203,339 in the latest year. Annual dividend, however, was held at 10 per cent and the steady requirement of £125,000 was covered 1.6 times by profit. The preference charge was again £22,500. Earning Rates

Earning rate on average ordinary shareholders’ funds is down from 16.7 to 9.3 per cent, and the rate on ordinary capital falls from 24.2 to 14.5 per cent. The fall in group profits reflects in the main the labour difficulties at Lower Hutt, says Mr Hamilton. By the time the dispute was settled, a substantial number of workers had left the company and, because of the extreme shortage of suitable labour in the Hutt Valley, it was not until the last quarter that production recovered. Tyre Demand

Demand for tyres remained buoyant. Modernisation and expansion of the tyre factory and expenditure on retreading facilities and on the new golf ball factory at Christchurch gave rise to £866,000 in capital expenditure, he says. Shareholders’ funds are £87,190 higher at £2,496,242. Ordinary capital is steady at £1,250,000 and preference capital unchanged at £500,000.