Alloy Steel Profit Recovery

Press, Volume CIX, Issue 32007, 6 June 1969, Page 12

Alloy Steel Profit Recovery

Thanks to a notable improvement in general trading conditions during the second half of the year the net profit of Alloy Steel (N.Z.), Ltd, for the year to March 31 rose $4133—0r 25.6 per cent—to $20,273, the chairman (Mr H. B. Anderson) announced.

■- Non-trading income der clined by $2017 to $1904. > The dividend is held steady t at last year’s reduced rate of 3 7.5 per cent, and again takes it $12,600, covered 1.6 times. r The earning rate on average shareholders’ funds—

His annual report, released yesterday together with the statement of accounts, shows that the result was after providing $3563 more for depreciation at $12,032 and $1905 more for tax at 815,284.

$6771 higher at $296,504—is up from 5.1 per cent to 6.9 per cent, while the rate on the steady capital of $168,000 improves from 9.6 to 12.1 per cent. The demand for the company’s products continues, and at balance date the order book was satisfactory, Mr Anderson said. “Over recent years the shortage of skilled moulding staff has been a constant source of concern to management. Wherever possible this

has in part been met hy the introduction and extension of machine moulding and this development has been assisted by the improvement in the company’s plant carried out over the last few years. “There are, however, limits to the scope of the techniques and if the foundry trade is to keep pace with the forecast national economic plans serious efforts will have to be made to attract skilled labour,” he said. There are few significant movements in the balancesheet Investments declined from $56,830 to $27,700, but working capital improved by $16,150; the ratio is 2.6 to l.|