C.S.R. profit margins lower in half-year

Press, Volume CXV, Issue 34031, 20 December 1975, Page 19

C.S.R. profit margins lower in half-year

f.Veic Zealand Press Association—Copyright) , SYDNEY. The group revenue of C.S.R., Ltd, rose 31 per cent or sAustBB.6m in the six months to September 30, but the pre-tax trading profit only rose $47,000 to $41.3m, the half-yearly report says.

The group's net trading profit rose 2.5 per cent to I $20.6m after providing $900,000 less at $16.6m for tax, but $4.3m more at $16.7m for depreciation. Minority interests rose! $400,000 to s4.lm. The total profit for the:

half-year was $23.3m after; the inclusion of an extra-! ordinary profit of $2.7m. In the previous corresponding period the group had an extraordinary loss of $3.6m. Wet weather delayed the harvesting of the season's sugarcane crop and there! was a 21 per cent fall to 235,000 tonnes in raw sugar production at C.S.R.'s mills. Production for the full season is estimated to be significantly below earlier estimates, "but equal to last season’s total. Although world market prices for raw sugar have: drifted down during most of; 1975 the London price in; November averaged about: £l5B, which was much higher than in any period before 1974. Preliminary estimates for 1975-76 showed that world sugar production was well above the previous year’s level, but consumption was steady. There was room, however, for rebuilding stocks, which have been reduced steeply in recent years, the general manager (Mr R. G. Jackson) says. Final prices for the 1975: season would almost certainly be below the record prices received for the 1974 season, he says. The Mount Newman iron I ore venture, in which a 68, per cent owned C.S.R. sub-; sidiary has a 30 per cent'

interest, shipped 14.4 m tonnes of ore in the halfyear. This was 0.9 m tonnes less than for the first half of last year, and about 3m tonnes less than scheduled. Industrial stoppages caused interruptions at both mine and port, and depressed steel production in Europe and Japan reduced demand for iron ore. Gove Alumina, Ltd (51 per cent C.S.R.) shipped 867.000 tonnes of bauxite and 155,000 tonnes of alumina in the half-year compared with 725.000 tonnes of bauxite and 143,000 tonnes of alumina in the 1974 corresponding period. The wholly-owned Mount Gunson venture operated at a loss for the half year because of depressed copper prices, and C.S.R. Chemicals, Ltd (50.3 per cent C.S.R.) continued to be affected by the general downturn in business in Australia. Buchanan Borehold Collieries Pty, Ltd (92.65 per cent C.S.R.) shipped 394.615 tonnes of coal in the halfyear compared with 300,555 tonnes, but this was lower than expected because of a long industrial dispute. Australian and Kandos Cement Holdings, Ltd (50 per cent C.S.R.) achieved better profits in the half-year than in the previous corresponding period.