COMMERCIAL Absence of labour disputes helps Union Steam profit

Press, Volume CXII, Issue 33065, 4 November 1972, Page 21

COMMERCIAL Absence of labour disputes helps Union Steam profit

(N.Z. Press Association) AUCKLAND, Nov. 1. The profitable trading of the Union Steam Ship Company of New Zealand, Ltd, in the nine months to September 30 reflected the absence of major industrial holdups, the directors say in the annual report.

But it could not be said there was a complete absence of industrial delays and disputes in the shipping industry, the chairman (Sir Peter Abeles) and the deputy-chairman (Sir Reginald Smythe) add. Company policy was directed toward avoidance of disputes wherever possible. They confirmed that the economics of the operations of the new inter-island ferry Rangitira were in serious doubt at this stage.

The rotor failure in a turbine had further affected the economic viability of the vessel.

Since June, two of the three mini bulk carriers chartered for the TransTasman service had begun trading, and the third was expected to be in service later this year. The new roll-on, roll-off vessel for the TasmaniaAustralia mainland trade would be built in Australia, and tenders were now being examined; the vessel should be in service by late 1974. As announced, it would have gas turbine propulsion with electric drive. Tenders had been called world-wide for two 10,000 ton, 20 knot, roll-on, roll-off ships for the Tauranga-Aus-tralia service. As announced, the company returned to profitability in the nine months period—the operating profit was sl.9m, against a loss of $513, 909 the previous year. The net profit was $905,874 (against a loss of $814,512) after depreciation of $3,097,021 (down $948,910), tax of $1,058,881 and minorities of $22,166. On an annual basis, the profit represented 4.9 per cent on ordinary shareholders’ funds as at the balance date, and 9.1 per cent on the ordinary capital, held equally—through Tasman Union, Ltd —by Australian and New Zealand groups. The dividend was 5 per cent, taking $600,000. In addition, the company in March paid a dividend of $l2 million from revenue reserves. Because of this, a revaluation of properties by

152,787,700, and some minor! (adjustments, shareholders’, funds were now $24,199,170,1 against $34,295,186 at June! 30, 1971. This included $2 million preference capital, held by public shareholders, of whom more than 80 per cent live in New Zealand, and ordinary j capital of $l2 million. ! Minority interests werej $169,344. and term liabilities; $3,694,448. I

Fixed assets were $35,523,359. including the fleet of $26,639,438—a decline of about $3 million, reflecting the sale of vessels. Investments were $789,778. There was a working capital deficit of $8,250,175. with overdraft nearly ssm higher at $5,131,560, about $2 million due to the parent company, and debtors down more than $3 million to $5.5 million.