Union Carbide profit recovered

Press, 26 February 1977, Page 17

Union Carbide profit recovered

NZPA Sydney Union Carbide Australia and New Zealand, Ltd, has reported a 26.8 per cent increase in total net profit for the year to December 31, after a substantial recovery in the final six months. The profit for the year increased ’from sAust2.7M to $3.5M, of (which $2.9M was earned in (the second half-year. ; Earnings in the six ’months to June 30 were (down 47.1 per cent at ($562,000, because of industrial unrest in the plastics (division, and unsatisfactory (sales of chemicals. The sec-ond-half recovery has (prompted the directors to (maintain the final dividend (rate of 6c a share after haliving the interim dividend to 3c a share. The reduced anI nual distribution of 9c (12c) (a share will require $2.2M

($2.7M). Sales last year rose 19 per cent to 5103.6 M after being ahead 10.2 per cent at S47M at the half-way mark. The most significant feature was the improvement in the production and sales of polythylene. Much of the disruption to production had been overcome. I The directors stressed that (costs of materials, labour, ’and charges for services (continued to increase during ithe year. The profit was (after providing SI.IM more (for tax of $2.3M and ($200,000 more for depreciation of $3.7M. The tax provision benefitted from a credit of $333,000 in recognition of the government’s announcement that legislation was being introduced to provide a reduction in tax liability when related to inventory costs.