U.E.B. PROFIT FALLS 20%

Press, Volume CXV, Issue 34000, 14 November 1975, Page 15

U.E.B. PROFIT FALLS 20%

Acu- Zealand Press Association

AUCKLAND. U.E.B. Industries, Ltd. is confident of a satisfactory result for the full financial year, despite a 20.6 per cent fall in group net profit to 52.7 m in the six month to September 30, the directors say in a half-yearly report.

Sales were slightly ahead of last year, but increased costs, mainly of raw materials, affected the profit.

The interim dividend was being maintained at 3c a share (6 per cent of which .75c a share is to be taxfree, from the share premium account. This distribution from the share premium account would be the last recommended by the directors, as approved funds from this source had all been used.

The dividend is payable on December 10, ex dividend November 19.

The demand for packaging eased during the half-year, after buoyant trading last year, the directors say.

Although domestic carpet sales remained steady exports to the company's main market, Australia, recovered strongly. Tasman U.E.B. Holdings, Ltd, the Austr a 1 i a n subsidiary, suffered a fall in packaging sales becasue of reduced de-

mand and intense coni petition.

I “During this period of uncertainty, constant attention is being paid to debtor control, inventories and general operating efficiency. Many economies have been effected, and the liquidity position of the companv is very strong,” the directors say.

Since the end of September the demand for carpet, in both domestic and overseas markets, had increased markedly, and packaging sales were showing a similar trend.

Total exports of the group for the full financial vear were expected to be well ahead of least year.