A.C.I. Expects To Raise More Funds

Press, Volume CVII, Issue 31480, 21 September 1967, Page 16

A.C.I. Expects To Raise More Funds

(N.Z. Press Association —Copyright)

MELBOURNE, September 20.

Australian Consolidated Industries, Ltd, the big glass, plastics and engineering group, expects to raise more funds next year, the chairman (Sir James Forrest) said at the annual meeting this afternoon.

Sir James Forrest said the company had lower results in the first five months of its current financial year than in 1966-67. But, he said, group results were expected to recover (for the full, year, and at least equal the result for 1966-67.

Capital is needed because of computer installation, upgrading of production facilities and broadening the company's base of operations. Much of the necessary capital is provided from internal

sources. But forward requirements are such that the directors expect to raise more funds next year. Sir James Forrest said that in Australia the turnover in the latest five months ex-

ceeded last year’s figures.

But increased costs of some basic materials and fuels and the effects of wage increases were more than absorbing additional revenue.

Narrowing profit margins had shown up in several glass making, paper and plastics operations.

Dumping Suspected

Australian Window Glass Pty, Ltd, had an extra problem in competing with low price sheet glass mainly from China, Russia and Italy. A dumping investigation on these imports is proceeding under the Customs Tariff (Dumping and Subsidies) Act.

New Zealand group results for the latest five months exceeded last year, Sif James Forrest said. But the downward trend in some national economic indicators caused the directors to take a cautious view of results expected for the rest of the year. They expected New Zealand profits for the year to be about the same as previously, which would be satisfactory.