Golden Bay maintains market share

Press, 9 April 1980, Page 20

Golden Bay maintains market share

PA ~~ Wellington Concentration on improving efficiency and methods of distribution is what rhe immediate future holds for Golden Bay Cement Company Ltd. says the chairman (Mr A. S. Paterson) in his annual review. He says it would be un-

[ wise to anticipate any dramatic upturn in the use of cement and points out that fae New Zealand cement industry output last year was 757,649 tonnes of which GB’s share was 466,453 tonnes or 62 per cent. In the 1974 year the industry had record sales of 1.100,000 tonnes and Golden

Bay’s share was 718,255 tonnes or 65 per cent. But the capacity of the industry is 1,300,000 tonnes. “Our projections indicate that it will be many years before usage approaches this level. At best we think that the decline is coming to an end.” savs Mr Paterson.

Group profit before extraordinary items was sl.Bm compared with sl.7m in 1978, he says. “This is not an edequate return on the assets employed but considering the state of the industry, is not an unreasonable results.”

The company includes a supplementary financial statement for the year ending December 31 on an inflation accounting basis. Using this basis, the profit for the year fell from $2.2m to slm.

“This result highlights the effect inflation has-on a capital intensive industry such as ours” the chairman says. “While the group’s main activity has been and will continue to be the manufac-

iture of cement if does have I involvements in other areas. ! Hal f-owned Wilsons • Cement operates three farms, one surrounding the. works at Portland, one suf-* rounding the quarry at Hikurangi and the third on limq-, stone deposits at Waipu. The properties are self-sup-; porting and will increase in. value as our farm develop-’ ment programmes proceed.” “Golden Bay has an inter-, est in a joint venture squid* fishing operation. Results for the first year were pleasing’.' and are included in the ac-', counts.”

During the year. Golden, Bay sold 193,025 tonnes of, cement (221,306 in 1978) while Wilsons sold 273,42$ (279,561). ; The annual dividend is. being maintained at 12 per, cent; shareholders’ funds, totalled $20,236,109.

($19,555,647). Earnings a share were Sc, (16 per cent) and net asset backing 91c (88c). The report lists the ten largest shareholders. They; are Associated International Company, Ltd (Blue Circle. Group) 10,213,496 out of a total of 22,266,824 shares on issue; NML 716,055; David. Llovd Ltd 447,569: Prudential' 285,584; AMP No. 2 230,000; AMP 169,000: Rangi) atira 150,000; MEC 147,600;. Commercial Union 130.000:’ Challenge Pension Fundi 122,000. ;i> :