Golden Bay Fears Higher Costs

Press, Volume CIX, Issue 32127, 24 October 1969, Page 14

Golden Bay Fears Higher Costs

(N.Z. Press Association)

WELLINGTON, Oct. 23.

The chairman of the Golden Bay Cement Company, Ltd, Mr D. O. Whyte, says in his annual review that his company’s wages bill has increased by 62.7 per cent in the last five years on approximately the same tonnage of sales. This is an indication of the inflationary trends which have beset New Zealand. From $676,090 in 1964, wages and salaries have risen to §1,100,095 this year.

“It is obvious that increased prices cannot be avoided," he said.

In his review accompanying the accounts, Mr Whyte says that the recession in the building industry, after restraints imposed by the Government during 1966. eased during the year and the company’s turnover and profits show a recovery from the results of the last two years. As already announced, net profit increased by 11 per cent in the year to June 30— from §790,798 to $878,054. The result is after higher provisions for depreciation and tax.

Dividend for the year is a steady 11 per cent, plus a special jubilee bonus dividend of 24 per cent. The dividend requires §707,940, compared with §576.840 in the previous year.

Sales increased bv 7.6 per cent from 239,960 to 257.934 tons, the chairman says, while gross profit on trading was §354,885 higher. “While production and deliveries for the first three months of the current year compare satisfactorily with those of last year, we anticipate there will be a modest reduction for the full year,” says the ehairman.