Alliance Textiles may cut output

Press, 3 December 1982, Page 17

Alliance Textiles may cut output

PA Dunedin Alliance Textiles, Ltd, increased its turnover but reduced its profit in the first quarter, said the chairman, Mr W. R. Jackson, at the annual meeting yesterday. “We are only too aware of the signs that the economy is tightening, with the over-all outlook less encouraging. "Forward orders are lower than usual for this time of year, reflecting the pessimism of our customers,” he said. “Our exports, while very satisfactory indeed so far, show signs of decline brought about by the recession being felt by overseas customers,

particularly in Australia. “We may have to reduce production to match sales opportunities and this consideration is being closely monitored by the management.” Flexible hours and attitudes would be needed by the workers, management, and union representatives to make the most of the more scarce volume of business, Mr Jackson said. “The economy recognises the economic situation for what it is and within the constraints so imposed expects to produce continuing satisfactory profits and dividends.” The rationalisation pro-

gramme, including the merger of some Mosgiel, Ltd. assets and the purchase of the Holeproof mills, had taken longer than had been hoped and had cost more than expected, but it was now completed. Mr Jackson said. “The benefits, given reasonable trading, will continue to be substantial.” Sales, at $71.3M. were close to budget, but the rationalisation programme restricted the ability to deliver in some cases and cost some turnover. The range of exports was wider and efforts to diversify from carpet yarn had been of significant benefit, he said.