Falling sugar prices affects CSR

Press, 19 November 1977, Page 18

Falling sugar prices affects CSR

NZPA Sydney! Falling world prices for sugar and stagnant earnings from building and mining divisions caused a 7.7 per cent setback in the group net trading profit for CSR, Ltd, in the six months to September 30. A reduction in tax provided helped to offset the downturn and the group will pay an unchanged interim of 7.5 c a share (7.5 per cent). Group revenue dropped by 0.6 per cent to sAust4so.3M and the company noted that the contribution from sugar milling was substantially less “principally because world market sugar prices were much lower.” “Earnings from most other major activities were broadly in line with last year,” the directors say. Non-trading revenue dropped 18 per cent to $16.8M. Group net profit was down 1.5 per cent to $24.9M. The profit was after providing $2,568,000 more for depreciation at $20,887,000. Interest payments rose $1,903,000 to $18,559,000 and extraordinary profits totalled $BBl,OOO ($1,978,000). The major item in the

drop in tax was 54.5 M in investment allowances for expenditure on plant. The tax provision fell $5,179,000 to $10,539,000. The outlook for sugar beyond this year has been improved by the satisfactory re-negotiation of the longterm sugar agreement with Japan and by the conclusion of the new international sugar agreement expected to come into force on January 1,1978. “Industrial relations at Mt. Newman is better, and in consequence excellent rates of production are being achieved.” CSR said it is presently entitled to 75 per cent of the shares in AAR, Ltd. The acquisition of a majority interest in AAR is a major step towards strengthening the company’s resource base. “Development of the Hail Creek project will be a priority task for CSR in the next few years,” the directors said. “The moves into coal, oil and gas further the strategy of concentrating the company’s resources of capital and people on activities that are likely to provide the best profit."