Boral’s Net Trimmed By Higher Tax

Press, Volume CX, Issue 32396, 8 September 1970, Page 16

Boral’s Net Trimmed By Higher Tax

The group net profit of Boral, Ltd, showed a slight decline in the year to June 30, after a trebled tax provision.

Profit is down by $82,0001 to $4,919,000, after tax esti-! mated at $3,962,000 (up $2,658,000). The 1968-69 tax provision was lower than standard because of rebates on dividends received: mining investment; loss on sale and write-off of assets; past losses by subsidiaries; and payments for holiday pay and retiring allowances. The latest tax charge is still slightly lower than standard because of dividend income and some unabsorbed losses in subsidiaries. Tax Increased Earnings would have shown an increase but for the Budget tax rate increase, which added $219,120 to the provision. The latest result comprises $2,748,000 earned in the first half and $2,171,000 from the second half of the year.

Group revenue rose by $6,226,000 to $75,465,000, and profit before depreciation and tax rose from $10,433,000 to $13,121,000.

i preciation provision is not strictly comparable because I figures from the joint ven ture have not been consoli[dated this year. The latest depreciation figure is $3,849,000 (previous year $4,081,000). i The earning rate eases from [32.4 to 31.1 per cent on or dinary capital slightly in creased by the Steel Mills take-over.

Steel Mills Ltd

The directors attribute the gain in pre-tax profit mainly to continued increased profitability from the construction materials divisions (the significant factor in the 1968-69 profit increase) and to results from the acquisition of Steel Mills, Ltd, and its subsidiaries.

Ordinary dividend is increased from 20 to 22 per cent, including a final 11 per cent.

Investments

Steel Mills (acquired after a share and cash take-over bid late in 1969) and Glen Iris Brick (which also became a subsidiary last year) contributed $505,661 of Boral’s group profit after tax Only interest on the loan to the Total-Bora! petroleum joint venture has been included in the results. The directbrs say that de-

Boral’s profit excludes a surplus of $374,000 on sales of investments (previous year. $490,000) and its proportion of net profit (less than write-off) on sale of fixed assets, $336,000 (loss $809,000). Outside interests (also excluded) are up from $47,000 to $391,000. reflecting the spin-off of Boral Basic Industries, Ltd, during the year. INDICES Hew Zealand.—Financial Research and Management daily index: base 100. January 31.

1957: Sept. 3 319.34 Sept. 4 319.53 Sept. 7 320.25 Sydney.—Sydney Stock Exchange (July 1931 June 1939 enuals 100). Sept. 3 . . 349.98 413.19 580.08 Sept. 4 .. 353.85 414.65 582.29 Sept. 7 .. 352.34 414.73 582.47 London.-—Financial Times. Sept. 2 . . 335.9 70.03 51.4 Sept. 3 . 338.3 70.09 51.4 ' Hew York—Dow Jones. Rails Ind, Turnover Sept. 2 136 38 756.64 9,710.000 'Sept. 3 137.04 765.27 14.110.000