Repco profit ahead in half-year

Press, Volume CXIII, Issue 33191, 3 April 1973, Page 19

Repco profit ahead in half-year

A’.Z. Press Association —Copyright

MELBOURNE, April 2.

The unaudited group net profit of Repco, Ltd, Australia, rose by $569,000 or 13 per cent, in the six months to December 31, the directors report.

A steady 8 per cent interim dividend has been declared.

The profit was after providing $426,000 more for depreciation, at $2.6m, and $632,000 more for taxation, at $4.4m. Net sales were sB.lm higher at $85.7m. The directors said that in spite of generally flat economic conditions during the six months, Repco continued to t»ro”' strongly and the bene-

fits of this growth were widespread. On each dollar of sales Repco earned a profit equal to 5.8 c after tax, compared to 5.6 c a year earlier. In spite of the absence of growth in new vehicle registrations, the introduction of components and systems developed by Repco research enabled the group to increase its sales of original equipment to the automotive industry by 8.3 per cent to a total of sl9m.

Export and international sales, spurred by continuing ; world-wide demand in the i textile industry for the Repco yarn spinner, increased 30.8 per cent and reached $9.4m. The general industrial and agricultural markets were sluggish, with group sales declining 1.2 per cent to sBm. Australia’s currency revaluation last December was the principal item in extraordinary charges, which amounted to $444,413. i The immediate effect of the ! February, 1973, devaluation 'by the United States and ■some other countries is esti--mated to be a further extraordinary charge amounting to I $250,000. I The second half of the year has begun well. However, certain export areas are I under heavy pressure after international currency changes in February, and the export companies will be significantly affected if export incentives are reduced. The outlook for the rest of this year depends partly on how such uncertainties' are resolved, but at present Repco is budgeting for continued improvement in the group’s results, the directors say.