COMMERCIAL Tasman profit lower after record sales

Press, Volume CXII, Issue 33094, 8 December 1972, Page 18

COMMERCIAL Tasman profit lower after record sales

(New Zealand Press Association) AUCKLAND, December 7. The unaudited group net profit of the Tasman Pulp and Paper Company, Ltd fell $516,000 or 9.8 per cent to $4,770,000 in the year to October 31 in spite of a 4.9 per cent rise in revenue to a record $49.2m said the chairman (Mr J. C. Fletcher) in a preliminary report.

Mr Fletcher said that the increase in sales was insufficient to fully offset the heavy increases in costs under the prevailing inflation. This applied particularly to newsprint. The profit was after an increase in the provision for depreciation by $57,000 to $3,053,000, but the provision for taxation was $563,000 lower at $2,735,000. Less newsprint The dividend rate is steady at 13 per cent, with the 6| per cent final dividend payable on March 22, ex March 6. Sales increased $2.3m to a record $49.2m. Newsprint production amounted to 213,120 tons, which was a reduction of 3130 tons — caused mainly by increased output of lightweight newsprint and industrial disputes, Mr Fletcher said.

Production of sulphate pulp for sale rose 270 tons to a record 59,020 tons. Production of sawn timber declined 10.5 per cent to

> 71.7 m board feet. This, Mr i Fletcher said, reflected the drop in market activity durr ing the first nine months of > the year.