Comalco sees better result

Press, Volume CXVI, Issue 34130, 17 April 1976, Page 19

Comalco sees better result

(Neit) Zealand Press Association —Co;yriyht, MELBOURNE. Comalco. Ltd. Australia’s big-gest listed aluminium group, expects that 1976 will not 'j be an easy year, but its results will show a i ‘‘significant improvement” over those of 1975. I thie chairman (Mr D. J. Hibberd) said at the i annual meeting.

Efforts were being made ito keep costs down, to limit 'capital expenditure to e.ssenItial items, and io reduce inventories to the minimum 'practical level. ! “We continue to press for prices that will generate a ■ satisfactory return on your! ’investment,” he told share-1 holders. ] “Factors outside our con-! itrol, which will have a ; 'major effect on the com- ! party's performance, include (the policies of the Govern-, iment , the industrial situ-1 ation, and the level of wage' [rates, the degree of inflation,’ 'the relative values of cur-! rencies, and the extent to! which the domestic market! is open to attack by imports! from countries where costs: have been kept, under better, control,” Mr Hibberd said. , The prolonged strike at! Weipa in November and thej devaluation of the New Zealand dollar cost the company! $4.3m in profits. ! The profit for 1975 was! [down from sAust 17,334,000; |to $6,319,000. ■ Because the company's re-i ■ suits were so far below ex-' Ipectations the company had; decided not to pay dividends at the previous level. I “Because. of this ex-'

ilperience. 1 am unable to predict the dividends likely to ■ be paid in 1976.” he said'. -I In the first, three months ii of the year results were apIpreciably better than for the .'comparable period of last year. and the directors 'hoped that they would con.ltinue to improve. : Sales of metal on the :domestic market were higher than for the three months to 'March 31. lf'7s. , “The recent increase of ■United States 4c a lb in the Iso-called world price of aluJ minium is a sign that there iis a tendency for the inter“national market to j “Prices. and economic! ■ indicators have, however, I not vet improved to the exll tent which would justify (new major investments. I “Overall, the world aiu-l [minium industry has been, '(operating at about 85 per, •[cent of capacity. This means' 'that any improvement in de-1 Jmand can in the short term |be easily supplied from :■; existing facilities, and is unIlikely to be reflected fullv in ; prices. “It also means that the ■ scope for significant in-! . creases in the price of its basic raw material — bauxite -—- is limited.