I.C.I.N.Z. sales rose 12 p.c. to $41.7m

Press, Volume CXI, Issue 32522, 4 February 1971, Page 14

I.C.I.N.Z. sales rose 12 p.c. to $41.7m

The achievement of record sales by the Imperial Chemical Industries (N.Z.), Ltd, group in 1970 was undoubtedly because, at least in part, of the policy of concentrating marketing effort on those areas where its skills, both technological and marketing, are in greatest demand, and offer scope for greatest reward, says the managing director (Mr A. Gordon Robb) in the company’s annual report.

The group lifted its external sales 12.3 per cent above the previous year’s to a record $41.7 million. Mr Robb says the company’s year to September 30 was one of rapidly changing business conditions. The steadiness carried forward from 1969 soon began to wane as the incipient difficulties of mounting costs and manpower shortages developed into major problems. By the end of the year a strong inflationary trend had set in, and the country was faced with new high levels of operating costs and widespread industrial disputes.

Despite these unpromising conditions the market remained remarkably firm in most sectors, with little or no slackening by the end of the year.

Mr Robb says the 1970 result reflects only the average level of operating costs during the year, and the high level of costs reached by the end of the year will make a more difficult starting point for 1971. The 1.C.1. (N.Z.) result was announced in December. Consolidated net profit rose 15.7 per cent to $2.2 million, equivalent to an earning rate of 20.9 per cent on ordinary

capital and 15.5 per cent on average shareholders’ funds. An unchanged 10 per cent dividend is being paid.

H. Jones profit eases The group net profit of Henry Jones (IXL), Ltd, in the year to September 30, was $1,578,500, compared with $1,668,900. This was after higher depreciation, but less tax; and included $36,500, arising from a change in method of valuing stocks. There was also a profit on the sale of fixed assets of $109,300.