Coal and Allied goes ahead

Press, Volume CXVI, Issue 34128, 14 April 1976, Page 25

Coal and Allied goes ahead

r.V.Z. Press Assn —Copyright) SYDNEY. Higher export prices, and an investment in the local market enabled Coal and Allied Industries, Ltd, to show a 58.9 I per cent increase to sAust3.sm in group net jprofit for the six months Ito December 31. An increase in profits has I again led to an increase in the interim dividend rate, from 5 per cent to 6 per cent. This is after a sharp rise in the annual rate for 1974-75 from 7 per cent to 11 per cent. Export sales last year were lower than previously, resulting from Japan’s economic recession, and because of the completion of shortterm export contracts with other countries, the directors say Considerable industrial un-

rest occurred in the halfyear; 97 mine-work days were lost compared with 43 days in 1974. The adverse effects of industrial unrest, and lower export tonnages were offset by the higher export prices for coal, and the improvement in the Australian market. Earnings last year were also adversely affected by closure of the Aberdare north colliery. The mine was sealed at the surface in November to control underground heat. Coal and Allied is attempting to reopen the mine. The closure resulted in the

loss of about 60,000 tonnes of coal, the directors say.

They say that negotiations with the Japanese steel mills regarding prices for the fiscal year starting April 1 have reached a difficult stage. The mills were pressing for the reduction of 300 c a tonne, and other concessions.

The profit was after providing $22,000 more for interest charges at $31,000, $67,000 more for depreciation at sl.7m, and slm more for tax at $2.4m.

Gross revenue rose 11.9 per cent to $48.3m, but revenue from non-trading activities fell from $695,000 to $514,000.

In the year to June 30, Coal and Allied’s earnings rose 103.8 per cent to $4.6m. The higher interim dividend will be paid on May 24 to shareholders registered on May 6.

B.H.P. div. steady

A final dividend of 16c a share (16 per cent) has been recommended by the. directors of The Broken Hill Proprietary Company, Ltd, payable on May 26, ex dividend April 14. This makes a steady annual rate of 30.5 c a share (30.5 per cent).