Mason hard pressed in export markets

Press, 29 July 1976, Page 18

Mason hard pressed in export markets

PA ' Auckland ; Rising wages and operating I expenses made it difficult for 1 Mason Industries, Ltd, to ; retain its hold on export mar- > kets, says the chairman (Mr < F. A. Reeves) in his annual review. ■ A lack of export orders yearly in the year for packaged boilers, was to some 'extent offset by a substantial sale of abattoir equip- . iment to Hong Kong, and [other sales, he says. ■ As announced, group net profit rose 47.2 per cent to : $793,205 in the year to March 31. Sales rose 7.7 per cent to $21.8m. Of this total, merchandising contributed 67.2 per cent and manufacturing 32.8 per cent, compared

•■with 70.1 per cent and 29.9 [per cent previously. : On a more optimistic note, Mr Reeves says, the financial position of the group was probably the strongest it had ever been. “The policy in the last five years of moving away from unprofitable areas plagued by labour problems, and into more stable and remunerative areas of business had proved justified.”

Mason Anderson had experienced a strong demand for coal-fired boilers of its own design. Fork trucks and other handling equipment again brought increased returns during the year, and it is planned to extend the range of fork trucks. Because of the stability in world steel supplies, pricing had been restored to a normal and profitable basis. Despite a temporary fall in demand, the group had continued to upgrade foundry’ equipment in Auckland and Christchurch, Mr Reeves says.

In the field of industrial gas and welding, the Auckland gas plant continued to expand its output. The profit was after providing $30,905 more for depreciation at. $450,647. and $235,347 more for tax at $528,657. The dividend requirement is $17,302 up at $284,000. and the earning rate on ordinary capital rose from 24.2 per

icent to ,34.6 per cent and the rate on shareholders’ funds [was up from 7.9 per cent to 9.8 per cent. The balance sheet showed shareholders’ funds $438,233 higher at $8,427,295. It [included steady ordinary capital of $2,250,000 and preference of $250,000. Term liabilities rose $591,644. to $3,086,496.

Brdlds cuts rates Broadlands Dominion Group, Ltd. has announced further cuts on some interest rates offered on debenture stock, as from July 26. The new rates are:—B.s per cent for one year (previously 9 per cent) and 9 per cent for two years (previously 10 per cent). Other rates remain the same as before.

G.M.-H. profit up The profit of General Motors-Holden, Ltd. improved in 1975 to sAustl7.3M after the 10-vear (low of $13.1M in 1974. The (dividend to the United States parent company has i been raised SI.SM to S7M. iThe managing director of General Motors-Holden, Ltd (Mr C. S. Chapman) desIcribed the return of 2.7 per I cent on record sales of !$657M as “unsatisfactory.”