Carter Budgets Higher Profit

Press, Volume CX, Issue 32360, 28 July 1970, Page 20

Carter Budgets Higher Profit

(Hew Zealand Press Association)

AUCKLAND, July 27.

Price competition and rises in costs in the latter part of the year eroded margins of Carter Consolidated, Ltd, Auckland timber merchant, the chairman (Mr K. C. A, Carter) says in the annual report.

As announced, net profit dropped 13.4 per cent to $293,658 in the year to March 131.

target of the National Housing Council. Because the pattern of trading in some areas bad undergone significant changes, a reorganisation was taking place. This has resulted in improved profit for th? first two months of this year. However, with the impact of higher wage costs and the payroll tax (which was expected to cost the company 870,000), further measures, some with far-reaching consequences, would need to be undertaken. Trading conditions are expected to be difficult, but the directors were budgeting for a lift in profit and were confident that in any case the present level would be at least maintained. The company was strongly placed with long-term cutting rights and every effort was being made to explpit these by fuller use, and diversification, together with an expansion of exports. The Jackson Bay sawmill, destroyed by fire in April last year, was completely reestablished by January, The fire suspended exports, except for a small shipment of 53,000 ft, but production was now back to normal. Negotiations were under way to re-establish the export

market for a substantial proportion of the output. The total exports totalled $383,963 and the figure should at least double this year. As announced, net profit fell $45,514 to $293,658. It was struck after providing for depreciation of $361,472, $59,287 less than last year, and $203,915 for tax, an increase of $16,415. The steady 7J per cent divldent takes $214,118. Earning fate on average funds fell from 6.3 per cent to 5.3 per cent and that on capital from 11.9 per cent to 10.3 per cent Shareholders' funds rose $104,577 to $5,543,806. including increased capital of $2,854,911.

, House building continued 'at a low level, well below the

Turkish Beach Strike Oil The Turkish Beach Divana 1 well drill stem test recovered formation water with indications of live oil, the directors reported. They said dips suggest that the well is located on the flank of the structure. The well was at a depth of 6813 ft and at 8 a.m. on July 25 was drilling ahead with continuing indications ef live 0i1.—(,P.A.)