ICI improves net profit 12.6p.c.

Press, 1 December 1978, Page 14

ICI improves net profit 12.6p.c.

The directors of ICI New Zealand, Ltd, have reported J slightly improved net au-!l di ted trading results for the i year to September 30. < Group net profit on an; equity basis, rose 12.6 per I cent to $5,154,000. i Reductions in trading pro-) fit, and in the equity-share ■ i of associated companies’ j profits, were offset by tax | savings of $240,000 relating to increased export activity,'i and by $726,000 benefit from ' ■ the trading stock valuation j i adjustment. I< Additionally, there was a i gain of $129,000 in extra-, ordinary items from the sale i 1 of surplus, assets. ■ The profit was after pro- : viding $1,758,000 less for tax i at $1,954,000, after the stock i adjustment. . . 5 Interest expences in- t creased $60,000 to, < $1,534,000. I

Total sales for the year, of SII7M were marginally below 1977, but export sales at $4.6M showed an increase of 35 per cent. Sales volume was below last year, and despite measures taken to control cost I increases, the marvin of trading profit to sales at 6.8 per cent was below the 8.2 per cent achieved in 1977. The decline in business ’ and farming activity evident in the second half of 1977 I continued into the first part lof 1978, and sales to the building, motor-vehicle and ' textile industries were particularly affected. Conditions in the later months of the company’s financial year were significantly better, as the steps which the Government had taken to stimulate the economy led to an increase in business-activity.

The agricultural industry showed renewed confidence, while demand for textiles and motor vehicles also improved, the report says. The return on average ’Shareholders funds for the year was 13.2 per cent, compared with 14.1 per cent for 11977, while earnings per share were 29.4 c as against 29.0 c for 1977. The directors will recomI mend to shareholders at the I annual general meeting on i February 1 that a final dividend of 9c a share be paid. This is an increase of one l cent ■ per share and will 'make a total divi- ) dend/distribution of 14 per cent (14c a share) for the year, of which the interim, distribution of 5c a share was free of income tax. The total proposed dividend/distribution is covered 2.1 times, compared with 2.2 times for the 1977 year. The final dividend is payable on February 8.