Excellent year for Feltex

Press, 8 September 1982, Page 29

Excellent year for Feltex

Feltex New Zealand. Ltd. reported a good year, boosting profit by 39 per cent on sales up 22 per cent. Audited results for the year to June'3o show' a net profit of $22,960,000. up from $16,566,000 for the 1981 year. This was after marginally lower tax of $3,908,000 (last year $4,086,000) and after minority’ interests of $59,000 (deduction of $355,000). Extraordinary items, consisting of net profits from sale of assets less amount provided for restructuring, were $93,000—a sharp reduction from last year’s $909,000. Sales rose to $444,813,000 from $364,193,000 last year, up 22 per cent. This included a 29 per cent increase in exports to $57 million. Assets employed advanced by $22 million to $223 million, the increase largely financed by internal profit regeneration. Although final dividend is held steady at 14 per cent, with the higher interim of nine per cent (eight per cent last year), total dividend has been increased to 23 per cent compared with 22 per cent last year. Directors say this

takes into account the restriction contained in the June dividend regulations for the year ended June 22. 1983. The final dividend will be tax free from realised capital profits. The final is payable on November 9, ex October 19. Earning rate on end-of-year capital after the October l-for-10 bonus was 85.1 per cent. The dividend is covered 3.7 times by the profit. Feltex announced plans for a substantial development of the company’s sawmilling and processing operations at Tuatapere, 80km west of Invercargill. "During the next three years, this development will increase the productive capacity of the sawmilling, kiln drying, and processing facility," Feltex general manager, Mr Derek Sutcliffe, said. "Staff numbers will increase. and additional employment opportunities will be created in the district. “The agreement reached with the Waitutu Incorporation to use their timber secures the future for the

Tuatapere sawmills and the people employed there." he said. The investment is seen as part of an over-all Southland development plan. Initially it will be based on obtaining additional indigenous logs from the Waitutu Incorporation and later in the decade from the increasing volume of radiata pine coming available from State forests in the area. Mr Sutcliffe did not disclose the monetary size of the investment Feltex's timber resources group was making, except to say that through to the 1990 s it was “substantial." “Better utilisation of the logs will be obtained and additional value achieved, through sales of such high value products as furniture components, and mouldings,," said Mr Sutcliffe. "After meeting the demand from the New Zealand market, we shall be seeking increased export opportunities." Feltex is the major shareholder in the Opio forestry fund, which is planting 706 ha of radiata pine in the area.