Commercial Clyde has 'good start for the year

Press, 21 September 1977, Page 28

Commercial Clyde has 'good start for the year

PA Wellington) Clyde Engineering, Ltd, has had a good start to the* current year, said the chairman of tlie Lower Hutt-based engineer and earthmovingmachinery distributor (Mr E.) C. Marris) at the annual meeting. For the first four months since March 31, trading costs had been held substantially below budgeted figures. Trading results for the period showed that sales were being maintained and net profit was 18.7 per cent ahead. “The four months to July are usually fairly quiet but in| spite of that, and the downturn in the contracting business, we ‘have been able to produce some satisfactory results,” said Mr Marris. “This has been almost entirely because of the group’s activities outside the earthmoving sector, which continues to lie in an almost static situation because of the low level of activity. At the moment there is little indication that the outlook will im-

! prove in the foreseeable 1 future. “A very close eye is being kept on costs to maintain [ them in proper perspective, i but one form of cost we ' cannot control is the high :*cost of money, which cuts heavily into our gross profit margins.” • Mr Marris said that in ■ the company’s automotive ’ division, the outlook for Hino trucks and buses and foui-"wheel-drive farm tractors ;lwas encouraging. The Fiji 1 business was also trading at t a satisfactory level. I Atlas Steel, Ltd, had en- : joyed consistent sales of i) stainless steel as the demand -|for stainless steel continued - at a reasonable level, in spite > of the downturn in the build- - ing industry’. “I would like to be able to - say that the group’s record > turnover of more than S2OM - in 1976-77 will be repeated - in the current year, or hopet fully exceeded. But making -forecasts in the light of to--day’s conditions is a haz--ardous experiment,” said Mr -I Marris.