Clyde Industries’ profit declines

Press, 20 March 1982, Page 20

Clyde Industries’ profit declines

NZPA Sydney The heavy engineering group, Clyde Industries, Ltd, which felt the full force of the metal unions’ 35-hour week campaign last year, has reported a 27 per cent fall in profit for the six months to December 31. Directors said industrial disruption, higher interest rates and flat trading conditions in parts of the economy, were responsible for the drop in profit to $4.44M from $6.11M. Clyde factories were the centre of a protracted and bitter industrial dispute over conditions and a shorter working week and Clyde directors said final settlement of these industrial disputes involved further over-award payments which could not be recovered from Government contracts. The build-up in inventory and delays to completion of contracts’ because of industrial problems, were in part responsible for the four-fold jump in interest payments to $3.19M from $669,000. directors said. Clyde also increased bor-

rowings for investment in Fox Manufacturing Company, Pty, Ltd, and directors said high interest rates slowed Clyde's property development and finance divisions. They said sotpe sections of the economy in which Clyde has an interest were “affected by high'import competition. lower levels of investment expenditure and lower export sales." However, on a bright note, directors said the final part of the year would yield an improved result, provided reasonable industrial conditions prevail and the incidence of power black-outs in New South Wales was not high. Turnover for the period was up nearly 15 per cent to $108.3M from $94.4M previously. Tax fell to S4M ($5.41M previously). The company recorded an extraordinary profit of $71,000 (nil) while depreciation amounted to $1.05M ($850,000). Interim dividend. unchanged at 5.625 cents, is payable on May 19.