B.H.P. ahead for half-year

Press, Volume CXV, Issue 33774, 21 February 1975, Page 17

B.H.P. ahead for half-year

GN’eir Zealand Press A The Broken Hill 1 Ltd. increased net pr 855,661,000 in the six 30, compared with the The result is unaudited and before extraordinary ' items. The company said its 1973 period profit has been' adjusted up ard by $1,449,000 to take into' account a change to tax deferred accounting, and the cut in the Australian com-: panv tax rate to 45 per cent from 471 per cent. The higher profit level is I an improvement on the 1973) result but “it is a disappointing return in relation to funds invested, being 7.2 per cent on shareholders’ funds." the chairman of B.H.P. (Sir lan McLennan! savs in. the* report. Sir lan McLennan confirms in the report that the com- i panv will make a new noti-i fication to the Prices Justification Tribunal “to seek recognition of the need to restore steel profit margins to a reasonable level, adequate to justify further investment in the industry.” At the time the report was written the company did not

know that the tribunal had graned a 6.03 per cent rise. The report says that the steel profit drop “is more than accounted for by a fall in margins on domestic sales, which in turn is due in large measure to restrictions on prices in a period of serious inflation.” The steel divisions of the group suffered the most severe setback: profits fell from $9.6m in the half vear to November 1973 ' to' 8550,000 for the last half year. The minerals division showed the biggest jump, profits rose 36.6 per cent to $15.3m. The net profit from the company’s investment in the; petroleum industry rose 31.0; per cent to $34.0m. Profits from other subsidProfits from other sub-| sidiaries. and investments, were $300,000 or 4.0 per cent higher at ss.Bm compared with 1973. “The strength of the; petroleum-industry section will have immense bearing on the politics surrounding renegotiation of 'the price of local crude this year. “Mr Whitlam's pointscoring off the suggestion of j the Country Party leader (Mr _Anthony) of a 40 per cent

Association— 4 Copyright) MELBOURNE. Proprietary Company, rofit 6.0 per cent to months to November same period of 1973. rise in the price of Australian crude will be considerably! enhanced by the size of the* B.H.P.'s profits from 0i1,”.' the Australian “Financial' Review” says.