Ford N.Z. exports helped in 66 p.c. profit rise

Press, 11 June 1977, Page 17

Ford N.Z. exports helped in 66 p.c. profit rise

A 44 per cent increase ini exports was a significant! factor behind the 66.3 per cent rise in net profit by Ford Motor Company of New Zealand, Ltd. A profit of $5,711,102, was earned in the year to December 31. Exports from the company’s transmission and I chassis plant at Wiri, near Auckland, for the financial year totalled SIOM. Manual I transmissions for the Cortina and Escort four-cylinder car lines sold in Australia, and a range of products for the Australian and other Pacific markets, including hub and disc assemblies, brake drums, tie-rod ends and spindles, were exported. The company result showed the benefit of additional revenue, the tax-in-

Icentives applicable to in- f I creased export sales. f I Total vehicle sales in 1976 I had continued the downward f trend of recent years with 1 : an eight per cent decline I from the 1975 level, but for t the third successive year 1 Ford had sold more cars and < more vehicles over all than ■ any other single make. ( However, supply! I difficulties, in part caused . by industrial disputes, had 1 • resulted in a passenger-car decline from 19.5 per cent of , • the market in 1975 to 17.9 ■ per cent. ; In 1976 the profit before < , tax was SB.7M, compared < ; with the previous year’s $5.2M. ; The latest net profit was ' • after providing $107,322 less < ■fordeprec i a t i o n at t

$1,846,327, but SI.IM more for tax at $2,946,627. An interim dividend of $2,411,500 was paid to the United States parent company during the year, and the directors recommended that no further dividend be declared for the year. Shareholders’ funds at the end of 1976 were $3.3M higher at $32,653,694. Authorised and issued capital of $5,300,000 and a capital reserve of $8,657,402 were unchanged. Retained earnings increased from $15.4M to $18.7M. Net current assets rose $3.2M to $15.5M, and the current ratio rose from 1.7 to 2.0 to 1.