A.C.I. coped with many problems

Press, Volume CXII, Issue 32972, 19 July 1972, Page 25

A.C.I. coped with many problems

(New Zealand Press Association) WELLINGTON, July 18. Australian Consolidated Industries, Ltd, says in its report for the year to March 31 that in the second half of the year business conditions were adversely affected by industrial disturbances and marked increases in labour and material costs.

However, profits over the full year improved on the previous year with better trading results in Australia and New Zealand. The situation in South-East Asia was less favourable, and lower results were recorded in that area.

As previously reported, the company lifted net profit from $12.8m to $15.5m and added a 2 per cent bonus dividend to the steady final dividend of 6 per cent. The report said that there had been a general improvement in the glass packaging division in Australia despite sales growth being limited by the entry of a new competitor to the industry. Manufacturing performance was better, with higher productivity being achieved from upgraded furnaces and machine lines. Results from the canister division were affected by some market slackness during the normally buoyant summer season, and the increased cost of having to use imported tin-plate because of local shortages.

Slower growth Despite the growth in quantity and quality of imported table and domestic glassware, Crown Crystal Glass had continued to show good sales growth. Profits improved in the plastic products division and the future of the division was encouraging. The new expanded polystyrene trays and plates venture was cuccessfully launched. In spite of slower growth in the corrugated and solid fibre markets higher profits were achieved. Increased competition and costs were offset by greater efficiency in manufacturing and marketing. Australian Window Glass Proprietary, Ltd, showed better results for the year despite continued difficult trading conditions. Marketing problems had continued in Papua-New Guinea because of keen competition from Japan. During the year the New Zealand economy continued to experience a high rate of inflation, while real growth was at a lower rate than in previous years.

Wages restraints imposed by the New Zealand Government caused industrial unrest which affected production at some of the Auckland plants. During the year competition in New Zealand increased significantly from imports and local manufacture. In the plastics sector over 50 new competitors started operations, the report says.