A. Harvey profit rose: earning rates fell

Press, Issue 33842, 14 May 1975, Page 22

A. Harvey profit rose: earning rates fell

(New Zealand Press Association) AUCKLAND. Alex Harvey Industries, Ltd increased group net trading profit $924,00(1 or 12,6 per cent, to $8,253,000 in the year to March 31.

I After adding extraordinary I items the total unaudited ’profit for the year was I $8,400,000. Profit margins were eroded by increased costs of raw materials, and operating expenses not readily recoverable in increased prices, resulting in pre-tax profits being lower than last year, the directors say. Increased export incentives. and investment allowances allowed a lower provision for taxation.

Group sales again’ reached ! record levels. Export sales , rose 37 per cent to more than s6m. Earning rates on increased I total assets, and on share- | holders’ funds were lower i than last year, after waiting -up land and buildings by isl2m aftei; a revaluation. TVifol /••arsifol nvnanrli 41 iro

Total capital expenditure I for the year amounted to sllm. i During the year the aver- ' age cost of the company’s I major imported raw mat r’r- | ials rose at the unprecedented rate of 40 per cent. ; These and other sultanitial cost increases broug-.-Jn I their train greatly increased investments in stocks and i debtors. The increases in fixed and (working capital necessitated* additional borrowing of s3m I overseas, and S7m in New I Zealand, the directors say. The financial year began ] with an extremely buoyant ) economy. Sales, and profits * in the first six months were!

very much higher than for I the previous year, but in real i terms the sales for the second six months were below those of 1973-74. A steady final ordinary dividend of 10 per cent is . recommended, making a total dividend of 15 per cent (15c

•|H share) which is the same !: as last year. : I . I The final ordinary distribu-; jtion would take $2,257,785, and for the full year the re- > ; quirement w'as $3,236.136,; compared with $3,038,978 in the previous year.