Rheem's acquisitions increase profit

Press, Volume CXV, Issue 33774, 21 February 1975, Page 16

Rheem's acquisitions increase profit

i Veu' Zealand Press Associalion—Copynght) SYDNEY. Rheem Australia. Ltd's profit report for the six months to December 31 justifies its acquisitions overseas in the past 18 months.

Rheem New Zealand. Ltd.)

and P T. Rheem Indonesia, whose purchase had contributed to a rundown in the group's liquidity, provided most of the 8.9 per cent profit growth in the latest halfrear. Another overseas subsidiary. New Guinea Industries Pty. Ltd. also recorded a good result. The directors said that profit from the Australian

activities was almost identical with that of the previous corresponding period, despite a 25 per cent lift in sales The result for the last six months of 1973 included only four months of trading by Rheem New Zealand and none by P. T. Rheem Indonesia. The group earned $2,302.00(1 in the December half. compared with $2.113,000 previously The result was after providing $2.2m for tax ($1 Im) and sl.7m for depreciation ($J.3m). It excludes minority interests of $263,000 ($164,000) and an extraordinary profit of $67,000. The tax provision rose because of the lower investment allowances which applied last year and substantial increases in leave provisions.

The company, which has changed its balance date to May 31. the same as its parent. 8.H.P., will pay a second interim dividend of 8 per cent to shareholders registered on March 23.