Skellerup pessimistic

Press, 4 November 1978, Page 18

Skellerup pessimistic

; Pessimism on the outcome [of the. current financial year of Skellerup Industries, Ltd, i was the keynote of a short address, give by the chairman (Mr V. Skellerup) at the annual meeting yesterday. "Despite the comments of Mr Betty (the managing director of Empire Rubber Mills; Ltd) that I was overly pessimistic at the annual meeting last year ! am rill ibeing pessimistic,” he said. This year sates weie tic as they had been last year and the cost of wages and .materials were up. In addition, last year’s profit had been helped by 8420.000 from the 5 per cent stock-valuation adjustment, but the Government had dropped that. "No doubt the result will be satisfactory, but not as good as last year,” Mr Skellerup said. Before Mr Skellerup’s address each divisional manager gave a short account I on how their divisions were I running in the current finan-; Icial year to March 31. Mr S. M. Betty said that; the Auckland section’s profit' and sales had gone up, but ■in Christchurch they were down "We are dependent on the volume- of orders, which [were down in the first half I to September 30, and we s were working a four-dav : week. ! "But we are back to a ifive-day working week, and 'hope to continue this way iright to the end of the financial year,” he said. i Mr Jim Andrews, the! ; Rotocure division manager,' paid that there had been a ireduction in forward orders, compared with last year, but I business was still good. | Mr G. W. Crozier, the' head of the Para Rubber Company, Ltd, said that in I the last six months sales' I were ahead of last year, and' ahead of the level of [inflation. , i The company had one less [shop than last year, so there I was a healthy improvement: I in trading and also the ex-1

[tent of discounting had been [reduced. < “Rather than open newi i branches we are improving ‘the ones we have got. “For example, we are en-i larlging the Righ Street premises in Christchurch so we can do a better job. “Export orders are’ahead; of last year, and we have secured an order from Fiji [ for the first time,” Mr Crozier said. Mr H. L. Baldwin, the joint-managing director of Marathon Rubber 'Footwear, Ltd, said the forecast for waterproof footwear would

be well ahead of last year, .but canvas footwear had a [long way to go. i New equipment had been [bought for the canvas footIwear section, but it would take some time to get going, he said. Mr E. K. Maxted. the managing director of SkelleIrup Sales, Ltd. the wholesale division, said sales were ahead of last year, and marginally ahead of the inflation rate. “Despite consumer demand being depressed, for- - ward orders in clothing and footwear are ahead of last year." [