Rheem profit down 34 p.c.

Press, 29 January 1982, Page 8

Rheem profit down 34 p.c.

The net profit of Rheem New Zealand Ltd, fell 34 per cent to $330,000 in the six months ended November 30, the directors announced yesterday. It was after providing 17 per cent less for tax at $267,000. Sales slipped from $10.9M to $10.7m. An unchanged interim dividend of 3.5 c a share, taking $166,000, will be paid on February 15. Results for the first half of this year were disappointing compared with last year, the chairman (Mr J. G. Forsythe) said in the directors report. “The down turn has occurred mainly in the container division where sales in this six months have been affected by a change in seasonal demand. It is considered that turnover will recover in the next six months, Mr Forsythe said. “The engineered products, division has maintained its sales level, but the results were disappointing. Steps are being taken to improve the profitability of this division. “The water heater division

has shown steady growth with improving sales in all departments. This has been assisted by development of new products and a growing contribution from the vitreous enamelling department. Greater utilisation of the assests of this division has enabled economies in overheads to be achieved and the trend of profits is very pleasing.” “Moth-balling” of the L.P.G. Department had been completed and final costs had been absorbed. Rheem-Pak, the plastic tube and moulding division, has enjoyed steady growth with profit being maintained at a consistent and satisfactory level. The depreciation charge has increased from $285,000 to $371,000 as the result of increased plant investment. The decline in tax paid profit was disappointing Mr Forsythe said, but is not considered by the directors to be indicative of the annual result, which would compare satisfactorily with that of last year.