COMMERCIAL Firth Says Future Looks Bright

Press, Volume CX, Issue 32361, 29 July 1970, Page 21

COMMERCIAL Firth Says Future Looks Bright

(New Zealand Press Association)

AUCKLAND, July 28.

The year for Firth Concrete Industries, Ltd, Hamilton, has begun with the same buoyant turnover as in early 1969, and the future looks very bright, the chairman (Mr E. B. Firth) says in the annual report for the year to March 3L

The directors expect to maintain the 10 per cent dividend after the one-for-five bonus issue. Mr Firth attributed the 65.7 per cent jump in profit to increased efficiency, quality, and good customer relationships. After an increase in sales of 15.4 per cent to $3,568,000, the group net profit rose by $74,353 to a record $187,541. It was struck after providing $5765 more for depreciation at $179,018, $87,000 more for tax at $179,000 and $206 less for minorities at $445. The steady 10 per cent dividend takes $84,103. creased $80,678 to $1,523, 068, including capital raised by■ $1866 to $840,360. In the last year, the company spent $370,000 on the development of new manufacturing plants, and $125,000 on increasing and replacing the fleet of over 180 vehicles. The new concrete blocks plant at Drury started early in March. The company was confident of obtaining a good share of the Auckland market, but the new plant could not be expected to contribute to profits this year. The factories at Tokoroa and Waihi < had been reorganised. The company has bought I five acres of industrial land at New Plymouth, and has begun to build a factory there.

> In view of the change in . product requirements in the , area, the Taumarunui plant ' had been closed because it was uneconomic. r The concrete pipe subsi- * diary had another good year. > The pre-stressed concrete ■ and exposed aggregate units subsidiary was now estab- ■ lished with increasing sale's, and a good future. The first six months of the financial year to October 7 . produced a reasonable profit The readymix division experienced a great improvement. Sales of all farm products, which declined last year, had recovered 26 per cent with turnover reaching a record level.

The severe drought created a big demand for tanks and troughs, and this trend continued in the first three months of this year. The company had diversified into the fibreglass and central heating industries. The fibreglass subsidiary was using an interesting plastic material with almost endless scope. A patented fibreglass compost bin and aeroplane parts were showing considerable sales growth. Because of development and establishment costs there was a small loss in the first year, but with turnover increasing directors were confident that it would produce a profit this year.