Humes expects rise

Press, Volume CXVI, Issue 34106, 19 March 1976, Page 10

Humes expects rise

Humes, Ltd, Melbourne-based pipe manufacturer, which has more than one hundred factories in Australia and overseas, is budgeting for an increased 1975-76 profit, after an excellent first half result.

Net trading profit rose 4.3 j per cent to $A3.5m in the six months to December 31, • and sales increased 10.2 per cent in the same period to s93m. Humes has raised its interim dividend from 5 per) cent to 6 per cent. The directors said that the] result was good in view of the problems created by continued inflation, and that the; achievements of the parentcompany and Steel Mains! Pty, Ltd. the two-thirds-i owned subsidiary, were par-:

iiticularly pleasing. ■ Although it was clear that . some sections of the group’. ■ would experience reduced - i demand for their products in : the 1976 year, the improved results in the December half - lied the board to revise upawards their anticipated profitfor 1975-76. On present budgets and •\ trends, it was considered .{that net profit for the cur- ; rent year would exceed the previous figure by about the ■ annual inflation rate.’

I The interim result was I after providing $400,000 more for depreication at !$3.4m, $lOO,OOO more for interest al sl.2m, and I $900,000 more for tax at !s3.Bm. ! Income from investments fell from $375,000 to i i $309,000 and minority interbests rose .from slm to i sl.3m. ! The result excludes an ’ extraordinary loss of • $572,000 (previously a profit 1 of. sl.sm) resulting mainly from an unrealised exchange I loss. 1 Capital expenditure on ■ fixed assets for the half-year • totalled ss.lm, of which • sl.6m was incurred by the parent company.