Fine result by Carter

Press, 17 November 1981, Page 26

Fine result by Carter

Carter Helt Holdings, Ltd. is raising its interim dividend after reporting an 80.3 per cent jump in unaudited tax paid trading profit to $6,919,000 for the six months to September 30. The result, after a tax provision of $2,521,000 ($204,000 the previous year) allows for minority interests of $2,245,000 ($1,553,000), and is on a 15.7 per cent rise in total turnover to $100,941,000. In addition there was an extraordinary loss and writeoff of $39,000 (1980 $629,000 profit). The directors have declared a 1c increase in interim dividend to 11c (11 per cent) a share, all tax-free and payable on December 18, ex November 30.

The result includes the consolidation of Lee Bros Rotorua, Ltd, and an equity

share of Henderson and Pollard, Ltd, for three and a half months.

Export sales rose 1.8 per cent to $37,211,000 totalling 36.9 per cent of all sales made.

The directors say that all areas of the group traded profitably with the domestic market activities reflecting real growth and continued improved operating efficiency. They say exports in the second half are likely to be a similar level to the present result.

As well as the Pan Pac expansion the company has also consolidated its fishing position with overseas market demand for the factory output strong and prices indicating a firm upward trend. The directors expect the second half result to maintain the present momentum.

The company has stepped up its expansion programme for the Carter Oji Kohusaku Pan Pacific (Pan Pac) Whirinaki pulp mill to start thermo-mechanical pulp production earlier next year. The conversion and expansion programme has been revised so that the first TMP line can be operating by late May or early June. The company says it plans for the total conversion to be completed by August. The change will have the effect of reducing pulp production during the second half of this financial year by about 12,000 tonnes, through a total closure of the pulp mill over the Christmas break. To achieve its new schedule Carter Holt says it will also have to close the plant in May next year for a further two or three weeks.

The project was originally scheduled for completion next October, involving the joint-venture group in expenditure of $33.5 million.

The directors said that construction work on the site at Pan Pac was well up to the programme, so that production could be brought forward.

“This action is being taken with the agreement of all unions involved on the site and the company is grateful fpr the co-operation evident in the negotiations associated with this changed schedule,” the directors said.

The expanded mill will be the largest free-standing TMP mill in the world — four times larger than the Winstone-Samsung mill at Karioi — with production rising from 204,000 tonnes to more than 240,000 tonnes.