Shipping costs erode profit

Press, Volume CXI, Issue 32542, 27 February 1971, Page 19

Shipping costs erode profit

(N. 2. P.A. -Reuter—Copyright) MELBOURNE, February 26.

The group net profit of H. C. Sleigh, Ltd, for the six months to December 31 fell $29.3,000, or 6 per cent, to $4,467,000. The fall was attributed mainly to problems in the shipping division.

An unchanged interim dividend of 5 per cent is payable on-April 30. Difficult conditions had 'been experienced in shipping I activities because of escalating tanker operating costs, I but earnings should improve i considerably during the second half-year, the directors said. The export division traded . profitably, and increased sales were achieved in all I major products with the exception of coal, which suffered a substantial decline as la result of industrial unrest,

- and the slower growth rate e of the Japanese economy. The directors said that d they were satisfied with the ? activities of the several ex- - ploration companies in which i, the company had substantial 8 shareholdings. In both oil - and minerals, several inters esting operations were in progress. 1 The reorganisation of Fire--1 stone Australia Pty, Ltd, in 1 which the company had a 30 - per cent shareholding, was - virtually completed. This s company achieved a substan- , tial improvement in earnings ‘ in its financial year, which ended on October 31, and the progress had been rnainf tained, the directors said.