Borg-Warner to pay 13c for year

Press, 26 February 1977, Page 17

Borg-Warner to pay 13c for year

I NZPA Sydney; ; Borg-Wamer (Australia),; ’Ltd, is raising its ordinary! ’shareholders’ income by 23, per cent after an 86.5 per cent increase in net earnings to a record sAust6.6M in the year to December 31. The Sydney-based, United States - controlled, motor vehicle transmission maker has recommended a steady final ordinary dividend of 7c a share, which together with the higher interim-dividend raises the full year’s distribution from 12c to 13c a share. The final dividend is payable on capital enlarged by the one-for-four scrip issue in November, so that ordinary dividend income has increased from $698,000 to $858,000. ; The amount is covered ; more than seven times by the i net profit of $6.6M. i After excluding the preferl ence dividend distribution, ■ which rose during the period from $362,000 to $443,000

available net earnings return 93.25 c a share on higher average ranking capital as against 54.6 c previously.

The latest result was on revenue, which improved only 13.3 per cent, to $97.5M.

The increase in profit reflects better utilisation of the company’s facilities, and a substantial reduction in its interest bill. Continued efforts in the control of inventories and receivables, as well as low capital expenditure, had strengthened liquidity, enabling the company to repay its SUS22M loan before the devaluation of the Australian dollar.

“The progressive reduction of debt throughout the year resulted in the substantial cut in interest costs from $2.3M to $1.4M,” they said. A further contribution to the improved profit was a 10 per cent reduction in depreciation from S4.BM to 54.3 M. Tax in the latest period was SS.IM compared with $2.6M previously.