P.T.Y. Forests Major Boost In Profit

Press, Volume CX, Issue 32349, 15 July 1970, Page 21

P.T.Y. Forests Major Boost In Profit

(New Zealand Press Association)

AUCKLAND, July 13.

Forest ownership is now producing the biggest share in the profits of P.T.Y. Industries, Ltd, Putaruru, says the chairman (Mr A. L. Mason) in his annual report.

As previously announced the net profit was $301,256 for the year to March 31. This was an increase of $75,002, or 33.6 per cent, over the previous year. There is a substantial carry forward of tax deductions which will be beneficial to the company this year. This was because of deductions available to the group for export market and export incentive allowances. Profit planning has been based on turning the remaining first crop timber to the best advantage, until it is sufficient to carry the group while the second crop matures. Profitable Exports Since 1967 devaluation has opened the way for the profitable export, not only of additional sawn timber, but also of logs.

The increased supply of sawn timber to the domestic

market has reduced the necessity for the group to produce all its own requirements. Under these circumstances it has been possible to increase profits to the extent that, without affecting dividends, retained profits are available for reinvestment on a scale sufficient to tide the company over the years of reduced extraction of matured timber. Balance Sheet Term liabilities having been reduced by $136,356, include the elimination of short term loans of $365,000. Current assets were down by $246,857, representing substantially reduced trade debtors, contract debtors and work in progress. During the year shareholders’ funds rose by $204,859 to $2,562,213, which is just over 50 per cent of total assets.

Sales of logs, timber, houses and land in New Zealand showed a decrease of $402,449 to $5,297,675 in the year, while export sales of logs, timber and houses recorded a substantial rise of $855,000 to $1,512,308. Depreciation for the year was $51,555 which was a reduction' of $13,292. Interest on debentures and mortgages showed an increase of $14,213 to $74,229.