N.Z. Steel plans bonus issue

Press, 8 June 1979, Page 6

N.Z. Steel plans bonus issue

Auckland New Zealand Steel, Ltd, is raising its annual dividend tate and making a one-for-fen bonus issue after earning i 31.1 per cent higher profit

LU a ICLUIU OU,QU,UUV in the year to March 31, the directors say in a preliminary report. The dividend rate is being raised from 11 per cent to 12 per cent (12c a share) with a 7 per cent final payment recommended. The final payment will be payable on August 31, including the shares issued in the proposed bonus, making the total rate the equivalent of a 12.7 per cent payment on a pre-bonus capital. i Sales rose 27.4 per cent to ■5170.7 M. Exports rose 71.6 per cent to 557.3 M. Domestic demand for the (Company’s products is at re- ‘ 4n.' ? d levels, the directors say.

Export markets ar stronger, but substantial ir creases in the cost of bot local and imported raw mai erials and energy will mak it difficult to maintai present profit levels. The tax provision i $1,315,000 higher < $2,708,000, and depreciatio takes $1,149,000 more ; $6,517,000. Included in the result an equity contributioi $89,000 higher at $926,00' from Pacific Steel, Ltd. The earning rate on cap tai is up from 44.4 per cei to 59.5 per cent. The shares will be e bonus and ex dividend c August 10.