Fletcher profit $45,730,000

Press, 10 March 1982, Page 22

Fletcher profit $45,730,000

Fletcher : Challenge, Ltd, New Zealand’s biggest public company, earned a “reasonable” group net equity profit of $45,730,000 in the six months to December 31, the directors announced in a half-yearly report yesterday. The result was an increase of '16.7 per cent on the estimated • earnings of $39,200,0.00 for the previous corresponding period. "Having regard to the international recession and* our involvement in overseas trade, the result is considered reasonable,” the company said. The interim dividend has been increased from 7c to 8.25 c a share (16.5 per cent). Turnover for the period was $1095 million. It excludes commission sales of $438.2 million. The directors said results were well ahead in most of the domestically-oriented activities particularly steel,

motors, concrete, and consumer finance. Construction, property, stock and station were similar to last year. There was a continued softening in the sawnwood, chemical pulp, and newsprint export markets. “Earnings have been affected by the development programme, where the payoff will be in future years,” they said. “These include our research and development investigations, major plant enhancements and regional expansions. “In the second half of the year we are expecting strong performance in most domestic activities and a;seasonally improved result from the stock and station business. Higher results should be achieved from tighter management in a number of areas including Australian construction and finance, and

from the release of funds in low-earning activities.

“In the medium term the group will .be a major beneficiary when the international economy improves because of its large export involvement. There will also be good earnings opportunities arising from major domestic construction projects.” . , Operating income was $63.9 million, tend investment income $7.9 million; finance group income amounted to $12.0 million — making total group earnings before finance costs $83.8 million. Finance ■ costs - were $25.2 million and taxation $17.4 million, leaving a group profit after taxation of $41.2 million. To this was added $5.9 million - extraordinary items, and $1.4 million minority interests deducted, thus leaving group net earnings attri-’ butable to shareholders of $45.7 million.