Stronger trading by ICI in 1975-76

Press, 30 December 1976, Page 8

Stronger trading by ICI in 1975-76

Commercial

PA Wellington Trading was “perceptibly stronger" in 1975-76 than it was in 1974-75, says the chairman of ICI New Zealand, Ltd ( Mr 1). B. Green) in the annual report.

In the early part of the year demand was increased by some stock replenishment by industry, and by improved confidence in the building and farming sectors, he says.

“Subsequently most business areas served by the group enjoyed a better level of confidence and activity which enabled sales to recover significantly. External sales by the group rose to more than SIOOM.

“This recovery in sales, together with control of overheads and other expenses resulted in trading profit nearlydoubling to $4,021,000, in the year to September 30. However. it was still well below the 1973-74 profit. The group accounts show that the net profit available on an equity basis to ICI New Zealand for the current vear is $3,602,000. compared with $1,578,000 in 1974-75 and $4,386,000 in 1973-74. Mr Green says that the improved liquidity of New

.Zealand farmers created a 'favourable climate for chemical and farm products sales. The Government's noxious {plants control scheme also j contributed to a “good increase” in hormone weedI killers. i The acquisition of Tasman (Vaccine Laboratory. Ltd. I “broadened and strengthened” Id’s rural involveIment. and the agricultural {division has been merged with TVL to form ICI Tas{man Vaccine. Ltd. I “Although the market for industrial chemicals was rather dull in 1976. worthwhile increases in sales were achieved by the chemicals division. “There was strong demand for the products of the slide fastener division and the Avon Manufacturing Company. Ltd. resulting from the success achieved with exports by local garment makers. “Dulux entered 1976 with adequate stocks of both raw

I materials and finished goods, (enabling it to take advantage {of improving domestic and industrial demand.’’ he says. The range of Dulux decoraj five paints was extended by {the addition of a new product designed to take advantage of the increasing use of (concrete products. In spite of an ammunition 'sales drop caused by the 30 (per cent sales tax. C.A.C. Industries. Ltd, managed to in- ■ crease its ammunition sales, {while sales of aluminium {products achieved consider {able growth. 1 Earnings a share for the current year are 20.5 c compared with 9c for the previous year, with the dividend being steady at 12c a share (12 per cent). The net tangible assets a share stand at 196 c 188 c, and the dividend cover is 1.7 times (0.8 times). The company is paying out $507,000 to minority shareholders ($225,000).