Sir James Wattie Comments On Industry Profits

Press, Volume CIX, Issue 32302, 21 May 1970, Page 14

Sir James Wattie Comments On Industry Profits

(New Zealand Press Association) HASTINGS, May 20. Far from making a profit increase of 119.9 per cent last year over the previous year, as alleged by critics on television, the percentage of profit to turnover from the J. Wattie Canneries section of the Wattie group of companies, declined slightly last year.

“The disclosed rise of nearly 120 per cent in the net t profits of this group of com- c panies was almost wholly be- i cause of the merger in 1968 f and 1969 of three substantial r companies. They were J. * Wattie Canneries, Ltd, Gen- s ■ eral Foods Corporation and ' Cropper-N.R.M., Ltd. , "The profits of the two . latter companies were not , shown in the accounts of J. : Wattie Canneries, Ltd, for the 1967-68 year, because they were not strictly comparable for the 1968-69 figures, being related to various trading ; periods. i “When some allowance isli {made for these factors, there was a growth of around 10 , ■per cent in the net profits ; of the food processing group | between the latest figures and ithe previous year. “The need to allow for the I merger in interpreting the ■ ! figures is twice referred to by the bank in the text accom- i panying the tables. ;

Sir James Wattie said this ' this morning after the issue of a Reserve Bank statement ; which expressed the bank's regret that figures of com-' pany profits involving J.i Wattie Canneries, appearing? in the Reserve Bank “Bulletin" had been subject to misunderstanding. The “Bulletin" had been quoted on a television “Gallery" programme by people questioning the Minister of Finance (Mr Muldoon) about rising prices and profits. The Reserve Bank has issued a statement clarifying the profit figures of the “food! processing" group in the bulletin. The bank’s statement says:

"It is also clear from the tables that there was no change in the percentage of net profits to shareholders’ funds between the two years. The bank regrets that there has been some misunderstanding of the figures.” 1