Optical sees rise in exports

Press, 2 June 1981, Page 22

Optical sees rise in exports

PA Auckland Optical Holdings, Ltd. has budgeted for a sharp rise in export sales in the second half-year, with more contracts for producing fashion sunglasses. The chairman (Mr ,J. G. Tuck) 'told the annual meeting that export sales of $97,750 in the four months to April 30 were marginally below budget, but in line won (he corresponding period last year. Domestic sales in the first four months rose 14 per cent and ahead of budget. Mr Tuck indicated an improvement in the position after a “very disappointing” second half last year, which j n trading profits for tne full year falling from $167,000 to $92,000. He said that much new business was developed in generating record export sales of $802,000 last year and, given some continuity, the company hoped to exceed this level in 1981.

On the domestic side, firstquarter sales of spectacle frames and sunglasses were down on the same period last year because of high stocks held at retail level at the end of 1980.

But Optical’s marketing division reported that with an improved level of sight testing, sales of optical products had shown an "encouraging trend" since March as retail stocks returned to a more normal level. This was continuing through May. Sales of sunglasses, although below 1980 achievement. were above budget for the four months. Mr Tuck said. Production was now scheduled al a much more satisfactory rate than applied over the depressed second half of 1980. when a planned reduction of finished goods stocks was not achieved. Mr Tuck said turnover for che four months by Optical Australian subsidiaries was slightly down. But rationalisation of product range and general reorganisation of the Australian operation, similar to what had recently been done in New Zealand, was expected to improve what had been a “little better than break-even situation.”

Shareholders were given a detailed report on several measures needed to deal

with an “unprecedented slump" of at least 20 per cent in the volume of new spectacles dispensed since mid-1980.

The managing director (Mr E. L. Watson) said the experiences of last year showed up the need for Optical to continually introduce new products to a contracted domestic market, further reduce stocks of finished goods to meet current customer needs, and further promote eve care and eyewear.

He said the company regarded Australia as part of its domestic market.

"In response to market requirements, our new models of spectacle frames are in the higher fashion category and are meeting with good reactions from domestic ?nd export distributors,” he said.

“fn addition, new contract business is being secured to add to the renewed contract for manufacture of Jonathon Sceats sunglasses and spectacle frames.”

Mr Watson said a new umbrella product would help offset the seasonal imbalance between the two half years.