N.Z. Steel markets uncertain

Press, 20 July 1979, Page 17

N.Z. Steel markets uncertain

Commercial -

Auckland , -Improved performance by few Zeabnd Steel, Ltd, particularly in iron and steel- . faking may 'punter a somewhat uncer!pn future especially in Kport markets, says the fanagins-director (Mr J. H. . hgram) in the annual re- - »rt.

lhe company’s export markets were clouded by rising costs of imported raw materials, energy and freight, he cays. The improved profit resulted from the company’s ability to offset a continued weak domestic demand for finished products with ■export sales. Shipments of iron sand .concentrate from Taharoa [showed a significant increase. although the contract quantity was at the reduced level negotiated in the previous financial year. These increased sales are ;the result of the substani tially increased investment jin production and shiploading facilities after the contracts signed in 1976 and effective from April 1, 1978 he says. The subsequent reduction of 20 per cent in contract sales quantity, which was being repeated this year, was disappointing and the profit of N.Z. Steel Mining, Ltd, was not at the levels forecast when the investment decision was made. The company looked forward to the time when the Japanese mills could absorb ithe contract quantity and jthe deferred tonnage. ■ The new shiploading systems and offshore marine [terminal worked successfully throughout the year. Ore •carriers ''ce co’-’o'ctant-iy

turned around in about 51 hours, achieving the de signed loading rate of 260( tonnes an hour. The multiple hearth preheating furnace was making a major contribution t< energy saving. A waste hea boiler associated with the unit now supplied the entire works’ demand for steam Mr Ingram says. As reported group nei profit (after excluding nel exchange gains and losses, rose 29.8 to .$12,377,250 ir the year to March 31. The dividend rate hac been raised from 11 to 12 per cent (12c a share) witl the 7 per cent final dividenc payable on capital raised by a one-for-10 bonus issut which shareholders woulc consider at the company’s annual meeting on August 9. Total sales rose 27.3 pei cent to $170,704,000. witl

)-exports 71.8 per cent ahead . at 557.374.000. I The profit was after pro--Ividing $1,249,000 more for 'depreciation at $6,517,000. . and $1,315,600 more for tax “at $2,708,000. • ; The dividend absorbs . $2,708,000 and is covered 4 I - 6 times by the profit. The return on average, shareholders’ funds has im-' proved from 20.6 per cent to' 22.2 per cent. Ordinarv capital is up Ifrom .$21,112,000 to 1 '521,454,000 and total share-[ [holders’ funds $9,696,000 at $62,713,000. Term liabilities were down from $37,515,000 toj $33,619,000. During the year: the company’s overseas bor- - rowings were reduced by I $2,455,000 and local term loans by repayments of $917,000 to the Government • and SIM to the Bank of 1 New Zealand.