Rheem behind 13 per cent

Press, 13 June 1978, Page 19

Rheem behind 13 per cent

The group net profit of t Rheem New Zealand, al | j though 13.4 per cent dowi ! I to $627,000 in the year t< | May 31, was the secom ! highest in the company' : history, said the directors in a preliminary report. “In addition to the highei ( depreciation charge fron $258,000 to $359,000, thi change to a deferred tax ( I ation accounting basis haeduced the reported net profit by $lBO,OOO. “The net profit to sales I I ratio fell from 6.1 per cen. | I to 5.1 per cent, and the re (urn on average share oolders' funds declined from j 19 per cent to 13.7 per cent. ! “The generally difficult ( ( rading in the latter half ol I I he year with reduced de-i nand for all types of con-. ainers and a considerable all-off in water heater sales, ecause of a much lowet -ate of housing construeion, resulted in group sales

I'or the full year being onl” j t per cent ahead of last 1 "Export sales increased I rom last year and prospects 1 or continued growth in this I irea in the new year ate ( mcouraging." The group results include tamings of the newly-ac-juired Christchurch subsidiary company, Rowe • engineering, Ltd, for six I months only . i The profit was alter providing $204,000 less for tax (at $426,000. The allowance for stock valuation tax relief (was $70,000. Group sales rose 4 4 per cent to 512.3 M. while pretax profit fell 22.2 per cent to $1,053,000 | A recommended annual dividend of 6c a share (12 (per cent) is made-on capital raised by a one-for-three bonus issue earlier in the year. This compares with a total payout of 8c a share last j ea: