CSR profit falls 29.9 per cent

Press, 20 November 1981, Page 8

CSR profit falls 29.9 per cent

PA .■ ■' ‘ ■ Sydney CSR, Ltd, has reported a 29.9 per cent drop in halfyearly profit ’ to $42.5M, reflecting a big fall in sugar prices, lower profits from the Gove bauxite and alumina project, and reduced earnings from pastoral pro-

perties, distilleries, industrial chemicals, and copper mining. Profit fell from $60.6M in the previous first half after a 6.1 per cent slide in group turnover to $878.1M from $935.1M. The directors announced

plans to raise SI3SM with a one-for-five share issue .at 250 c a share to finance the growth of group operations. They said world market raw sugar prices remain depressed and the average London daily price for October was £l6O compared with £ 388 for October last year. Higher profits were achieved from coal activities and larger dividends were received from CSR’s Indonesian tin mining interest; better results were also reported by most of the product groups in the building materials sector. Despite the group profit downturn, an unchanged interim dividend of 9c a share will be paid on December 16. Books close on December 2. The profit was after tax of S3SM ($44.8M) net interest SB.2M ($13.4M), depreciation $40.8M ($38.9M), and before extraordinary profits of $5.5M ($9.6M). The rights issue Will be made to shareholders and convertible noteholders registered on December 2. It will involve about 54M new ordinary 100 c shares. The directors said that they expect that an unchanged annual dividend rate of 18c will be paid on the enlarged capital. The new shares are being issued at a price well below the current market price for CSR, which closed in Sydney yesterday at 398 c. Commenting on sugar operations, the directors said that industrial stoppages and wet weather delayed the start of sugar crushing. Bauxite production from the 51 per cent-owried Gove Aluminium, Ltd, dropped to 1.2 M tonnes from 1.7 M; alumina output fell to 168,000 tonnes, from 174,000 tonnes. Total coal output from wholly-owned Buchanan Borehole Collieries, Western Collieries, and Thiess Holdings, increased to 5.3 M tonnes from 4.3 M tonnes.