APPM dividend cut after profit slide

Press, 8 September 1982, Page 29

APPM dividend cut after profit slide

PA ' Melbourne The directors of Associated Pulp and Paper Mills, Ltd, have cut the final dividend to 8c a share from 9c after declaring a 14 per cent slide in group profits in the year to June 30. Profit dropped to sAustl7.2 million from $2O million, but substantial tax savings saved the group from declaring an even worse result. Pre-tax profit was down 48 per cent to $20.3 million from $39.4 million but tax allowances on new capital expenditure allowed the tax bill to be shaved to $3 million from $l9 million. The directors detailed a dismal outlook for the

group. “General paper demand remains weak,” they said. “APPM has lost significant market share because of the increasingly, high volume of imports of paper at substantially lower prices. “There is no alleviation of this problem at present and the company is facing the inevitable prospect of further cuts in production. “Continuing poor conditions in the housing industry have had a serious effect on the company’s timber products business,” they said. "General world-wide economic problems, especially in the Japanese pulp and paper industry, also combine to make the outlook uncer-

tain,” they said. Turnover rose 3.8 per cent to $382.5 million from $368.4 million. Investment income was down to $7.6 million ($7.7 million previously) and extraordinary profits were lower at $259,000 ($402,000). Interest charges increased to $9.3 million from $7.6 million and depreciation was up to $17.2 million from $l5 million. The lower final payout and a 3c cut in the interim dividend reduced the annual return to shareholders to 14c a share from 18c a share. Dividend payments totalled $8.4 million, down from 1981 payments of $10.9 million.