Commercial U.E.B. profit lagging

Press, 19 August 1978, Page 19

Commercial U.E.B. profit lagging

PA Auckland The net profit of U.E.B. Industries, Ltd. for the three months to June . 30 was “somewhat behind the 1977 figures,” the chairman (Sir James Doig) told the annual meeting. Higher costs of sales, and expenses, were responsible, but the situation was not unusual at this time of year he said. “The normal pattern is for business to come away in September-October. “Sales for the four months to July are slightly ahead of the same period last year, but the volume of goods handled had decreased slightly,” Sir James said. The trading profit of

56.9 M in the year under review 7 was the second highest in 30 years of existence, and a reasonable performance taking all circumstances into account, he said. “We were greatly assisted by taxation incentives, including the stock-valuation adjustment introduced by the Government last year. “I would like to urge that the Government maintain this deduction as it goes some small way in adjusting taxation to allow for the effects of inflation.

“It was encouraging to see a general reduction in interest rates in recent weeks, but the Government move of a few days ago is going to have the reverse effect. In my opinion, this is most unfortunate.

"The purest form of in-i flation is high interest) rates.” Sir James said. The latest report of the! Institute of Economic Research also came in for some criticism. “The views bn future business conditions are not felt with much conviction by us. “While there will undoubtedly be an increase in consumer spending, assisted by lower taxation rales from October, a medium and long term improvement can be achieved only by an increase in population. “Negative population > growth cannot provide sufficient stimulus to create a| resurgence of the economy,”} Sir James Doig said.