VIBRAPAC BLOCKS

Press, Volume CX, Issue 32362, 30 July 1970, Page 20

VIBRAPAC BLOCKS

Sales Higher

Group sales of Vibrapac Blocks, Ltd, were 6 per cent higher in the June quarter, and the company is seeking every possible means of reducing costs, the chairman (Mr M. Vincent) told the annual meeting yesterday morning. As a result, more adequate profit margins were being achieved.

As already announced, the net profit in the latest year declined, in spite of an 11 per cent Increase in sales, to a record $2.3m. Mr Vincent mentioned to shareholders several examples of cost saving by means of mechanisation. While referring to the possible effects on the building industry of the Government’s deflationary measures, Mr Vincent said that it anpeared the Canterbury area had not been as fortunate as North Island areas in relation to building permits. “During the recovery period of the building industry over the last three years, total New Zealand permits have risen about 70 per cent, but the Christchurch area permits have risen only about 38 per cent.

“In the same three-year period of recovery new houses and flats have increased 25 per cent in the Christchurch area, but in Quantity are still lower than thev were six years ago, that is 1963.

“New Zealand figures on the other hand are up 20 per cent over those of six years ago and this shows the relative slowing down in this area. From this is would appear that we in Canterbury cannot promote real growth unless the scales are held more evenly by the authorities for us to do so.”

The Invercargill subsidiary, Vibrapac (Southland), Ltd, ran at a loss after the installation of the new plant, in view of running in problems, periods of low production, extrq depreciation and the training of suitable staff. “Furthermore, . the flood tide of business anticipated by many as a result of the establishment of the aluminium smelter did not arrive. It is, however, starting to flood in now,” said Mr Vincent.