Write-off keeps Monier profit fall to 12 per cent

Press, 19 February 1983, Page 20

Write-off keeps Monier profit fall to 12 per cent

PA Sydney A deterioration in the home building industry to the lowest level in 18 years, and reduced profit margins, cut Monier Ltd's profit 12 per cent to sAust7.6 million in the six months to December 31 from sAustB.7 million in the same period last year. Turnover fell 4 per cent to $204.6 million from $212.0 million. An interim dividend of 5.5 c was announced, the same as last' year.

Commenting on the results. Monier's chairman. Mr E. S. Owens, said that a total amount of $16.4 million had been written off as unappropriated profits rather than amortising a portion of goodwill as in the past.

He said when this was taken into account before-tax profit was in fact down 23 per cent. Mr Owens said a modest improvement in profits is expected in the second half of the year’ from increased home building, while there is hope for improved results from the overseas division with “cautious optimism” as it becomes apparent that a recovery is at last underway in the United States. The company paid $4.5 million income tax against $6.8 million last year, and extraordinary items ac-

counted for $519,000 compared with a loss of $lll,OOO last year. Interest was steady at $5.8 million against $5.6’ million and depreciation was $B.O million compared with $7.7 million last year. Mr Owens said: “Trading conditions are expected to remain difficult in Australia for the remainder of the financial year." The sharp decline in the volume project building segment of the market — particularly in Queensland and New South Wales — intensified the impact of the downturn on the roof tile division. Mr Owens said that appropriate action had been taken to trim overheads within the division, as excess capacity caused fierce price competition and squeezed profit margins. “The concrete and steel group increased its sales for the period but profits were slightly lower. mainly through reduced contributions of sections dependent on the building industry," Mr Owens said.