Depressed prices hit C.S.R.

Press, 7 June 1982, Page 16

Depressed prices hit C.S.R.

NZPA Sydney Depressed alumina prices have been cited as one of the reasons for the reduced profits posted by the Australian conglomerate, C.S.R., its country’s second biggest company.

A majority shareholder in Gove Aluminium - the partner with Fletcher Challenge in South Pacific Aluminium’s bid for the Aramoana smelter - C.S.R. recorded a 26.5 per cent profit fall. C.S.R. reported net earnings of sAust 82.4 M (SNZII4.4M). The profit for the year ended March 31, fell from $112.1M in the previous year after a 3.5 per cent drop in turnover to 51763.4 M from $1827.8M.

Directors said . export prices for sugar fell steeply and profits from raw sugar milling were severely reduced. The sugar division’s profit fell to $22.1M from 558.3 M the previous year. They said a prolonged strike at Gove and depressed alumina prices reduced earnings from bauxite and alumina about 50 per cent.

The aluminium and chemicals division’s profit fell to $5.3M from S6.IM. C.S.R. has a 51 per cent interest in Gove Aluminium, Ltd.

However, C.S.R. reported higher profits from coal mining subsidiaries, the building materials division, and iron ore production.

The directors said the buildings materials division contributed J23.3M (previous year 522.1 M), energy $23.4M (J15.5M) and minerals SB.3M (S6.IM).

They said the Mt Newman iron ore venture experienced fewer industrial stoppages, higher contract prices and favourable exchange rate movements.

The gypsum products group increased sales and profits while the clay products and insulation groups, both of which made losses in the previous year, returned to profitability. Dividends are unchanged, with a final of nine cents and total annual dividend of 18c. The final is payable on August 6, and the books close on July 13, Profit was after tax of $35.2M ($71.9M) net interest

$75.2M ($68.2M) depreciation $88.9M ($82.6M) and before an extraordinary loss of SI.SM (previous profit $15.3M). The directors said that "in many respects, the difficult trading conditions of the past year seem likely to continue. "Until there is a significant increase in economic growth of the major industrialised countries, of which there are few positive signs, widespread improvement in commodity prices cannot confidently be anticipated." They said that sugar prices had fallen further in recent months and the United States had imposed quotas on imports. But given reasonable weather, they said, raw sugar production was expected to increase by about 7 per cent or 60,000 tonnes.