Tasman costs rise

Press, 16 June 1979, Page 19

Tasman costs rise

Auckland "Tasman Pulp and Paper an; . Ltd expects, in! diuon to other costs, to pay S7M more fori ciectncttv this year, savs T r managing director (Mr I • Ryan) in his annual re-’ port. charges for electricity! . be substantially higher I in. some cases more than! double, those incurred by 1 many competing pulp and ; paper companies elsewhere m the world, he says. If this country’s forest industries are to remain’ export-competitive some’ form of relief will be necessary. Improvements to the! geothermal steam heatexchangers have made'.

possible a reduced de ■j pendence on imported fue ! but because of a higher rat jof inflation, the costs o ; operating will increas I significantly, Mr Ryan says In the year under reviev j industrial disputes caused ; [loss of sales valued at S26M i The company's profitability [was reduced by more that !SIOM, and employees ]os [SI.SM in wages, the repor I says. But, Mr Ryan says: “De .spite tensions arising fron j industrial disputes, thi ’ steady increase in productior I rates, and the record level: of output now beins achieved, reflect credit on al trades, and process groups.' The newsprint price, of the doniPßtir mart At will k*.

1 come increasingly unprofit Liable without some relief, an< el the local market for sawt 'f| timber cannot be expected t< el strengthen significantly, hi >■l says. v There were no majoi a capital works during the [. year, but more than SSIV y was spent on plant modificaa tions to increase productior t levels, product quality, ant t plant efficiency. ■: As previously reported . Tasman earned a net trading 1 profit of $1,167,000. Ex- = traordinary items, mainly as i a result of the sale ol s geothermal assets and a > I deferred tax adjustment, inll creased total profit to ' ■ $7.197,000. . I Shareholders’ funds in- ; creased SIBIIM to 5127.6 M. -I Share capital increased SIOM to $31.4M by the issue of redeemable preference shares. Reserves are SB.IM higher. Term liabilities are down from $64.5M to $62.8M. Fixed assets are valued at 5165.7 M, compared with SI73M a year ago. Forest assets are SI.9M higher at SI3M. The value of investments is marginally lower at $14.7M (last year $15.5M). Shares in other companies are shown as being worth $l.l M compared with $6.5M in 1978, while a secured debenture in Forestry Shippers, Ltd, is included at $11.9M as against $7.5M. i Dividends for the year will require $2,737,000. The 6c a share (12 per cent) distribution to ordinary shareholders is covered 2.9 times. The earning rate on average ordinary shareholders’ funds fell to 6.1 per cent (from 13.6 per cent). The net asset backing per ordinary share is 298 c, compared with 277 c in 1978. Special meetings of group C and group F shareholders will precede the annual meeting of Tasman on July 19 The purpose is to seek authority to amend the I Articles of Association so that the existing six groups lof ordinary shares can be ■abolished. Provision will then be [made for the election of directors by all shareholders. At present, directors, other than those representing 'public shareholders, are appointed by the respective groups.