Union Carbide profit $4.7 million

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

Union Carbide profit $4.7 million

(New 'Zealand Press Association —Copyright) Union Carbide Australia and New Zealand, Ltd, increased group net profit 861,389 or 1.3 per cent to $4,662,808 in the year to December 31, the directors report.

per cent to 12 per cent; a final dividend of 6 per cent will be paid. Funds raised by the cash issue, which will increase paid capita] $4.9m to $24.6m will be used to assist in the financing of new construction, and to provide additional working capital. The directors expect, in the j absence of any significant de-| terioration in economic con-i ditions. that the 12 per cent dividend rate can Be maintained on the higher capital. There was a strong demand for the group’s products in , the first three quarters of ; 1974, but in the fourth quarter demand weakened markedly for some products, because of import competition, and conditions in the current year have continued to bej difficult, the directors say. i

But the profit was after aif ' $271,621 reduction in tax for f I 1973 as a result of the re- v cently announced change in tax rates to 45 per cent from i 47) per cent, the company r I said. $ The tax provision was f $761,103 higher than the t amount prima facie payable t Of this variation $468,926 was in respect of difference s between company and tax de- t preciation, and $292,177 re- c lated to provisions, accruals, c and other items not allowable t as tax deductions, the com-: pany said. ; f The company has an-'t nounced that it will make all one-for-four cash issue atjt< 1100 c (par) to holders regis-( e tered on March 18. c The provision for deprecia- a tion in the latest year was y down $261,496 to $3,094,605,1 j and the provision for tax was' * down $804,686 at $4,976,612/ Sales revenue rose 18 percent, the directors said, but; no figure was given. I The annual dividend rate) has been reduced from 13