Deflation policies taking effect — U.E.B. chairman

Press, 24 July 1976, Page 15

Deflation policies taking effect — U.E.B. chairman

NZPA Auckland The Government’s deflation [policies were starting to take effect and business could exIpect a sluggish period in the [next few months, the chairman of U.E.B. Industries, Ltd [(Sir James Doig) said at the 'annual meeting. There is a good chance of reducing the inflation rate, if the freeze on incomes was maintained. He would not suggest, therefore, that the outlook was bleak. U.E.B. could sell more carpet to Australia if it could produce more, and the company had plans to that end. ‘U.E.B. would continue to do [well in Australia, and elsewhere. because there was no [maker overseas which could

1 produce wool carpets of the; same quality, he said. i The net profit of $6.7M for > the year to March 31 was by a 61 per cent increase in exports. Exports were still ris- ’ ing, and sales and profits for ■ the first three months of I 1976-77 were ahead of the ; previous corresponding period. ' Since March 31 U.E.B. 1 has bought a Te Atatu steel- > framed furniture manufact turer. This move would en--1 able a considerable expansion in output and provide greater ■ variety in the company fur--1 niture-making activities. Sir James Doing regretted . that the board’s plan to in- > crease the dividend rate by - 1 per cent could not be reai- ) ised. But he assured the I shareholders this would be

! done when the company was able. The rate of profit to sales ‘ improved from 5.2 c to 5.3 c ■ in $1; this was not high con■lsidering that the company • had SIO2M in funds inli volved in achieving sales • worth SI26M, he said. ; Because there were only a few shareholders left, in Aust- . ralia, the register there had - been closed and the shares - transferred to the New Zea- ■ land register. i The directors of U.E.B. • were looking into the pos- ■ sibility of an employees share scheme, and studying I the schemes of other com- - panies. ' The preference share issue, - and the dividend recom- ■ mendation were approved by • shareholders.