Howard Smith ahead but cautious

Press, 16 September 1976, Page 22

Howard Smith ahead but cautious

NZPA Sydney Howard Smith, Ltd , has reported a 49.2 per cent increase in profits for the six months to June 30, but growth in the current six months will be held back by a drop in sugar profits, despite the inclusion for the first time of profits from the subsidiary, the Moreton Central Sugar Mill Company, Ltd.

Sugar profits were primarily responsible for Howard Smith achieving a 28.6 per cent increase in profits last year. Earnings in the first half of last year rose only 6.3 per cent to S2.OM, partly because of industrial unrest, and work bans. In the last half of last! year, when sugar pr.ofitsi were brought to account, the group increased net profit 39 per cent to $5.5M, making total earnings of the group for the year $7.5M, compared with SS.BM in 1974. Net earnings in the first

six months of this year rose from $1.97M to $2.9M after a 41 per cent rise in sales revenue to $26.5M.

Shipping results showed an improvement over the. corresponding period of last year.

The profit was ’after a 68.6 per cent increase in the provision for tax to SI.4M, a 44.5 per cent rise in the provision for depreciation to SI.6M, but a 16.4 per cent fall in interest expenses to $249,000. A steady interim dividend of 5c a share will be paid on October 29 to shareholders registered on October 14. The directors are appealing aga-nst the Trade Practices Commission’s decision ito again block the planned merger of Howard Smith’s towage business in Gladstone with those of the Adelaide Steamship Company, Ltd, in Newcastle and Sydney.