Trading profit of N.Z.M.C. rose 57%

Press, Volume CXIII, Issue 33413, 20 December 1973, Page 18

Trading profit of N.Z.M.C. rose 57%

(Hew Zealand Press Association) WELLINGTON, December 18. The net trading profit of the New Zealand Motor Corporation, Ltd, for the year to October 31 rose 57 per cent to $3,154,000, the chairman (Sir Walter Norwood) said in a preliminary report.

The profit was after providing §1,061,000 more at $2,559,000 for taxation. No provision for depreciation was given.

The directors will recommend a final dividend of 6c a share (6 per cent) making a total of 10 per cent for the year with 9 per cent in 1972, 5 per cent of which was tax-free. The final dividend will be paid on March 14. In the latest year extraordinary gains amounted to i $305,000 and increased the net profit 49.5 per cent to $3,459,000. The earning rate on shareholders’ funds improved from; 7.4 per cent to 10.7 per cent. For the first time sales at sll Im had topped sloom, being sl2m higher than 1972. Net earnings a share, before extraordinary items, were 21.0 c compared with 13.4 c last year. While the increase in profit this year was pleasing, it had to be remembered that 1972 had been a disappointing year and this year’s result; must be seen in that context. Sir Walter Norwood said. The 1973 figure had been ■ achieved in the face of a (frustratingly difficult supply 'situation not only from Britain but also from Aus|tralia. “We are well aware of the I production problems in those (countries, and are taking all

- possible steps to minimise: t the effects of these by close 1 j co-operation and liaison with, our supplying factories,” he 1 said.