Boral Basic raises dividend

Press, Volume CXII, Issue 32861, 9 March 1972, Page 20

Boral Basic raises dividend

<N.Z.P.A.-Reuter —Copyright) SYDNEY, March 7. Boral Basic Industries, Ltd, Sydney-baser quarry owner, contractor, and manufacturer, has raised its interim dividend jc a share to 5c a share (10 per cent) after the net trading profit for the six months to December 31 rose £450,000, or 26.7 per cent, to 82,136,000.

The provision for tax was $360,000 higher at $1,941,000 and depreciation of $1,213,000 was $68,000 higher. The net trading profit was reduced $49,000 by losses on disposal of assets. The result before this gave an annual earning rate on ordinary capital of 38.7 per cent compared with 31 per cent for the previous corresponding period and 28.9 per cent for the last full year. Buoyant trading conditions were encountered during the latest period, the directors said. Group turnover increased by 13.7 per cent. Trading conditions since the end of the period were seriously affected in January and February by the power strike in Victoria and the cyclonic conditions and extraordinary periods of rain in Queensland, New South Wales, and Victoria. The outlook for the rest of the. year is somewhat clouded by uncertainties about adverse weather, the level of economic activity, and industrial conditions. Quarrying profits in Victoria improved after cost reductions and a general improvement in prices. Sand

and gravel plants in New South Wales operated at full capacity with encouraging results, the directors said. Planning for expansion of quarrying activities in all states has proceeded and it is expected that new quarries will be started during 1972. The asphalt and bituminous road surfacing companies had very satisfactory results except in New South Wales, where competition was very intense.

The pre-mixed concrete companies increased their market share in Queensland and New South Wales. A new plant has been commissioned in Brisbane and two additional plants are being erected in New South Wales, where competition is severe. In Victoria concrete trading continued very successfully. A new plant was erected in South Australia, where results were up to expectations,, the directors say.