Uncertain outlook for CSR

Press, 3 August 1981, Page 20

Uncertain outlook for CSR

PA Sydney International economic conditions were adversely affecting demand for many of the commodities in which CSR. Ltd has large interests, the chairman, Sir Noel Foley, told the annual meeting.

Prospects for coal and oil

were encouraging, but sugar prices were uncertain, the aluminium and steel markets were depressed, tin prices were lower than last year with no significant recovery expected before next year, and the outlook for copper was also uncertain, he said. In the year to March 31,

CSR earned a record $112.1M profit, of which $58.3M came from sugar. Sugar production was up and the average price was 35 per cent higher. This year, industrial action delayed the start of the crushing season and wet weather caused further delays. No cane had been crushed in the last two weeks, he said. Production was still expected to be 8 per cent higher than last year’s 845,500 tonnes, provided weather conditions were favourable and there was no further industrial disruption.

He noted that the London daily price had risen to an average of 228 stg last week from a low of 168 stg on May 12, an increase of 60 stg. But the appreciation of the Australian dollar over the same period severely eroded the benefit to CSR. In Australian dollar terms the increase was only $47 from $3OB to $355. “Present indications are that a continuation of generally satisfactory weather in most growing areas in the world will lead to sugar production being about, or slightly above, the expected level of world consumption in the 1981-82 years,” Sir Noel said.