COMMERCIAL Hanimex result affected by export losses

Press, Volume CXV, Issue 33966, 6 October 1975, Page 18

COMMERCIAL Hanimex result affected by export losses

f.Vew Zealand Press Association —Copynsht)

SYDNEY

Substantial losses on export sales of its Australian-manufactured photographic equipment caused the group net profit of Hanimex Corporation, Ltd, to fall 39.5 per cent to sAustl.sm in the year to June 30.

The profit had fallen in spite of increase in worldwide sales of 42.2 per cent to 556.8 m for the Brookvalebased manufacturer, importer, and exporter. The 1973-74 profit was split evenly between Australian and international business, but overseas operations contributed 70 per cent in the last year. Because of the losses on the export sales of slide and film projectors, Hanimex i will start manufacturing them at Cork, Ireland. Production costs in Ireland are expected to be about 30 per cent lower than in Australia, the managing director I (Mr J. D. Hannes) said. Manufacturing activities at ‘the Brookvale plant will be

concentrated on new items such as bicycles. The group will also expand its range of medium-size domestic appliances.

Large-scale growth is expected from its distribution of Japanese-manufactured pocket cameras, arid further growth from the manufacture of pocket calculators. Another area of expected expansion was the photofinishing division, Mr Hannes said. Facilities in Sydney had been doubled, a photo-finishing laboratoryhad already been opened in Brisbane, and a similar facility was expected to be working soon in Melbourne. All the group’s overseas manufacturing businesses had been run profitably. However, the Australian manufacturing business had faced extraordinary increase in costs, coupled with increased payroll taxes, reductions of export promotional benefits, and successive revaluations of the Australian dollar, he said. The group’s total costs had risen by about slom, or 50 per cent, in the last year. The profit was after providing $467,000 less for tax at $726,000, but $141,788 more for depreciation at $740,788 and $20,872 more for amortisation of goodwill at $64,193. There was an extraordinary profit of $307,000 ■ — mainly as a result of a tax credit. ($67,000 previously). After providing for minority shareholders’ interests, the total profit was sl.Bm or 25.1 per cent less than the previous year’s total.

The dividend for the year is maintained at 20 per cent, with a final dividend of 10 per cent recommended. The total ordinary dividend will absorb $688,191. and is covered 2.6 times by earnings.