Poor start for Feltex

Press, 2 November 1982, Page 26

Poor start for Feltex

PA Auckland Feltex New Zealand Ltd has made an indifferent start to the 1983 financial year. The chairman, Mr H. G. Callam. told the annual meeting in Auckland yesterday that sales in the first quarter, to September 30. had risen only 10 per cent over the first quarter of 1982. and the profit, after tax. was marginally less than in the comparable period. Mr Callam said it was hoped that the recent personal tax cuts would assist in a market recovery. Although the slower rise in sales and reduction in profit was partially the result of the freeze on prices and wages, he said, the company continued to believe that reducing the rate of ‘inflation must remain the major goal of New Zealand to ensure the continuation of its international competitiveness. The depressed local market. with the recent sharp

downturn in the motor industry. would have particular impact on Feltex Reidrubber. Ltd, Mr Callam said. That operating company manufactured both tyres and general rubber goods, he said, and both these industries were clearly under threat. Mr Callam told the meeting that the Feltex group had progressively extended its activities in’Australia during the last few- years. At last balance date. June 30. the group had a total SNZ42 million of assets in Australian undertakings. This represented 13 per cent of total group assets. Mr Callam said it was a matter of some concern that despite the pending agreement with Australia on closer economic relations, applications by New Zealand companies to invest in Australia were not regarded by the Australian Foreign Investment Review Board any

more favourably than applications by companies domiciled in other parts of the world. , On other aspects of group undertaking Mr Callam said that property investments continued to show good results. Further investments have been made since the end of the financial year in industrial and commercial properties. Despite the interest freeze imposed by the Government. Feltex Finance. Ltd. continued to attract investors, and profit for the year to date was in line with budget, he said. Although the outlook for the group’s markets, indeed for the world economy, was rather gloomy, he said, the balance of the year was being faced ’ with confidence. Shareholders sanctioned a recommendation by the directors that a dividend reinvestment plan be instituted.