B.H.P. Profit, Output Up

Press, Volume CIX, Issue 32232, 26 February 1970, Page 15

B.H.P. Profit, Output Up

(New Zealand Press Association)

WELLINGTON, February 25.

Group profits of the Broken Hill Proprietary Company,. Ltd, for the six months to November 30 were higher than in the

corresponding period of the previous year, the directors say in their half-year report.

This • was a reflection of favourable trading conditions, coupled with increased output , throughout the period. The directors say that, while this favourable over-all comparison is mainly attributable to the major iron and steel operations, the subsidiaries in general also produced satisfactory results. The Mount Newman iron ore project Contributed net profits for the first time, but the oii anci natural % as suh ' ‘Debentures Best’ In the immediate future, the 7$ per cent debentures offered to noteholders in Associated Motels of New Zealand, Ltd, Auckland, would be more certain of a return, the chairman (Sir John Allum), said in a circular to noteholders. The directors < urged acceptance of debentures rather than of shares (or a mixture of the two) in : conversion of the notes on April 1, he said. They felt that a return of the Logan Park Motel to a satisfactory profit level was possible, but by *.no means immediate.— (P.A.) :

sidiary Hematite Petroleum Pty, Ltd, has not yet done so. Domestic demand for all steel products continued to strengthen throughout the period and ordering rates are now substantially higher than ever before. The explanation for this is found in the buoyant economic conditions in Australia, with high levels of activity in the major steel consuming sectors coupled with a fall-ing-away in imports. This high rate of ordering is continuing. The directors say heightened steel demand has been a world-wide phenomenon and has enabled the company to increase its export prices to levels above those prevailing at home, and to increase the value of its exports from $38.1m in the half-year to •November 30, 1968, to $46.4m in the latest period. Such has been the pressure of domestic orders, however, that B.H.P. now has to curtail its export business in most steel products to satisfy domestic customers. Raw steel produced in the six months was 3,474,108 tons Compared with 3,183,544 tons a year earlier and pig iron £.982.873 tons compared with 2,711,617 tons.