Wattie sees ‘excellent’ year for exports

Press, 21 December 1976, Page 22

Wattie sees ‘excellent’ year for exports

I Wattie Industries, Ltd, is | looking towards an “exceli lent’’ export performance in - the current year, the chairitnan (Mr D. F. McLeod) said ■ at the annual meeting. [ The company was forecasting a substantial increase in j exports, and its spread of I ' overseas customers would [hopefully overcome the un-i [ favourable effects of the Australian devaluation, he said, i

si Mr McLeod pointed out to -[shareholders that while 36.8 i [ per cent of the company’s - (exports went to Australia, I [the 7 per cent devaluation I by New Zealand would assist -[the company’s competitivei [ ness in other countries. ■; The Pacific Islands take ‘[35.9 per cent of export pro- ' duction, the Far East, includ’ling Japan, absorbs 22.5 per ■(cent and 2.4 per cent of ex-1 ’(ports go to the Middle East.; ! Last year export sales rose > [54 per cent to $11.3M. Sales to Australia since ! July 31 had been excellent, i “A recent substantial: order from Australia, re-: ceived’ since the currency! [changes, could be indicative; of a reasonable opportunity to compete in that market,” Mr McLeod said. The devaluation would increase costs in New Zealand, particularly in relation to imported components and ) debt servicing. “Our own position is that [ [ we are largely geared to pro-! ! cessing domestic raw ma- [ ■terials, and our main concern ( ;will be more particularly ini [the purchase of equipment.

[plant spares and fuel, and of [course, in domestic cost [ structures,” said Mr McLeod.

For the three months to ‘October 31, group sales, in [dollar terms, were 17.5 per • cent above the previous [corresponding period. [ “We would assess our results so far as satisfactorily ahead of budget,” Mr McLeod said. The company is forecasting a SI6M capital expenditure bill for the current year compared to S9M last year. More than $6.5M of this sum is earmarked for routine replacement and upgrad-

ing of existing assets but there are “a number of developments in the course of implementation or currently under consideration.” These new developments, include the tender for a South Island flour mill, the re-design and processing of the Timaru vegetable plant, and the completion of a maize-starch plant at Onehunga. Mr McLeod said that the company did not see immediate needs to seek outside capital-funds.