Commercial Rheem profit halved in first half
Rheem N'.Z Ltd, yesterdays announced that unaudited group net profit after taxation for the half year to i November 30 was §156,000i ($359,000 in the same period! last year) on sales of | $6,114,000 (§6,444,000). The directors say in their report that the less than buoyant condition of the economy generally is reflected in the over-all decline in the company’s sales al- i though in the circumstances! these have been reasonably ! well maintained. In particular unseasonall delays in the food industry ! resulted in the demand for! some major container lines I being below expectations during much of the past six! months. There has been a significant upturn in demand ,n recent weeks and substantial) orders are now being held. Production lines at both!
r < factories, Wellington and I Auckland, are currently operating at high levels. In the plastics division 1 sales which also were at . lower than budgetted levels for several months, have regained near expected volumes and a satisfactory level of business is anticipated in the months ahead. Exports of mains pressure) water heaters to recently! ) developed overseas markers ■ • have resulted in additional) production in the appliance! ; division and the benefit of j -the increased sales from this; activity are now commencing to accrue. Production of'l.p.g. (liquid ! petroleum gas) cylinders' ’commenced towards the end! of the period and the sales; 1 outlook for these products is I igood. The directors state that! 'profits were effected by con-i
I i siderable and non-repetitive ' developmental and pre-pro-duction expenses on new ; . product lines, both for local : ! and overseas markets, in- ; curred in the period under review. Revenues from these new r undertakings have only recently commenced to be) 'realised but did not contribute to the reported profit. ! i The directors draw attenJtion to the fact that on '■present outlook the results’ J for the first six months are; not indicative of the likely | outcome in the remainder of! ''the year. An improvement in sales. ;and profits which became: evident in recent weeks,' gives ground for optimism! j that if conditions do not unexpectedly deteriorate satisfactory results should be ; achieved in the remaining (six months, they say.
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Press, 22 December 1978, Page 11
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360Commercial Rheem profit halved in first half Press, 22 December 1978, Page 11
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