C.R.A. cautious after big rise

Press, 1 September 1977, Page 18

C.R.A. cautious after big rise

NZPA Sydney Conzinc Riotinto of Australia, Ltd, is taking a ! cautious view of the second (half of 1977 after its group net profit for the six months to June 30 rose 46.9 per cent to sAust44.4M. World metal markets are generally showing signs of weakness.

The devaluation of the! Australian dollar helped the: export-oriented group in the first half of this year, and the main ingredients in its profit gain were substantially better performances by iron ore, and bauxite - alumina-aluminium, which were partly offset by, a decline in copper and ai larger loss on uranium. I The interim dividend has! been raised to 4.5 c a share (9 per cent). In 1976 an interim dividend of 3.5 c was followed by a final of 5.5 cents (11 per cent) to make a total of; 9c a share (18 per cent). On the basis of results I previously announced.i C.R.A.'s indicated share of; the net profits and losses of| Hamersley, Comaico, Bou-j gainville Copper, and M.K.U. improved 25.3 per cent toi about S29M. Australian Mining and j

Smelting, Ltd, now incorporated with C.R.A.’s results, showed a profit gain of $300,000 to $11.6M.

Group sales rose 20.3 per cent to $186.3M.

Companies in Australia had benefited from the net devaluation of the Australian dollar relative to the United States dollar. “In addition, certain world metal ; prices, particularly gold, Jead and aluminium, have shown steady improvement,” says the report. “The prices for copper and zinc, however, have fallen as world stocks remain in substantial surplus. Depressed conditions in j world steel markets have resulted in minimal increases in the prices of iron ore and (coking coal,” the report Isays. The latest profit was after (current and future tax of ]$46.OM (up $4. IM), depreciation of $51.3M (up $5.2M), [ Government royalties of 1520.4 M (down $703,000) and i minority interests of $19.6M | (up $2.3M). It included $11.3M (up |$4.4M) of net equity of earnings of associated companies. The profit was also after unchanged currency exchange losses of SI.SM.