Pye Inds margins reduced

Press, Volume CXV, Issue 33791, 13 March 1975, Page 21

Pye Inds margins reduced

(New Zealand Press association—. Copyright) SYDNEY.

Rising wage costs and price restraints ! imposed by the Australian Prices Justification Tribunal reduced the profit of Pye Industries, Ltd, in the second half of its year to December 31.

The electronics, and elec- ! trical goods manufacturer ! had a 34.4 per cent fall to ] $1,038,000 in net profit for I the year. 1 At June 30 the group’s net ] earnings, at $570,000 were 25.5 per cent ahead of those

for the previous correspondiing period. In the second half of the year the group felt the full impact of rising costs on its profit margins. Pye earned a net Sl.lm in the six months to December 31, 1973, but this was more than halved to $468,000 in 1974.

In the last nine months of ! the year the cost of produc- ! tion labour in Pye’s factories I rose 50 per cent, and over I the full year, the average ] wage level of the group’s ] entire work force increased 32 per cent. In addition the group faced high interest costs, and the Prices Tribunal placed constraints on price increases for its products. However, the directors were expecting that increas- ! ing sales of coldur television receivers this . year would •jhave a beneficial effect on • earnings. I Profit growth in the past ‘ year was checked by the heavy initial costs associated with the start-up of manu- ; factoring colour television • sets at the group’s Sydney ■ factories. ; Group sales in 1974, at , $40.7m were 21 per cent higher than in the previous . year. The annual dividend, payable on May 9, is being at .15 per cent. It will absorb $425,000. I The year’s net profit is . after providing $2OOO less , for depreciation of $367,000 and $394,000 less for tax of $1,339,000. I Pye is 54 per cent owned : by the Pye group of the : United Kingdom, which in ; turn is controlled by the ; Philips group of Holland.

Toyota, Nissan sales The Toyota Motor Company made a 25.6 per cent gain in its export sales in February but these were 8.1 per cent down from the previous month. February exports totalled 62,979 automotive vehicles, and the United States was the biggest export market, buying 14,311 units, half last year’s total. The Nissan Motor Company, another big car firm, said its exports in February totalled 68.986 units.