I.C.I. New Zealand profit rises 9.5%

Press, Volume CXII, Issue 33091, 5 December 1972, Page 28

I.C.I. New Zealand profit rises 9.5%

The group net profit of 1.C.1. New Zealand, Ltd, for the year to September 30, rose by $203,841 or 9.5 per cent to £2,343,526 the directors say in a preliminary report.

The profit was struck after providing $38,683 more for depreciation at $1,044,401, but $257,212 less for tax at $2,228,401. An unchanged annual dividend of 10c a share (10 per cent) will be paid on the old shares. The 10 per cent rate will be applied to determine the payment on the new shares in proportion to the time for which they were paid-up during the year. Dividends will be paid on February 22. The profit represents an earning rate of 12 per cent, compared with 13.6 per cent last year, on average shareholders’ funds. Group sales were 6.5 per cent higher than in 1971 and the directors say that this increase was achieved in a year when business confidence was cautious and uncertain.

The benefits of the higher sales were substantially offset by lower margins, principally in the merchanting of imported products, and the impact of a continued upward trend in wages, salaries and other operating costs, the directors say.

Govt approval Joseph E. Seagram and Sons Inc., of the United States, and Montana Holdings, Ltd, of Auckland, have made it official that Seagrams has won Government approval to buy a 50 per cent share of the Montana wine operation. Seagrams of the United States, a subsidiary of Distillers Corp.-Seagrams, Ltd, of Canada, will market Montana wines in all areas outside of New Zealand.