Dunlop profit 8 per cent up

Press, 26 February 1983, Page 18

Dunlop profit 8 per cent up

Dunlop New Zealand. Ltd, had a 8.5 per cent tax-paid profit rise from $4,470,000 to $4,848,000 for the year ended December 31. On a current cost accounting basis the increase was 6.7 per cent, from $1,782,000 to $1,901,000. Sales on an historic basis were up 12.2 per cent from $9,027,000 to $10,128,000. Interest payments rose 0.3 per cent to $1,743,000 from $1,737,000. Tax was up 25.4 per cent from $2,820,000 to $3,537,000. Net export incentives were included at trading profit level for the first time. A final dividend payment of 25c, of which 15c is taxfree. makes 40c for the year (unchanged). The chairman and managing director (Mr W. B. C. Evans) notes the inclusion of

net export incentives at trading profit level for the first time. In their present form. Dunlop regards the incentives as "an important enough influence on management operating decisions to warrant full recognition of their contribution to profits.” The value of the incentives was unchanged from 1981. But in 1982 they were mostly earned in industrial products with significant sales growth in Australian and Hong Kong while exports of tyres declined. The bulk of the trading profits, improved by SI.IM. was derived from the New Zealand replacement tyre market, aided by savings through increased efficiency and more stable raw materials prices at the Upper Hutt factory and by

well sustained sales of retreads. "Against this, the severe decline in the motor assembly industry in the fourth quarter had a direct adverse effect and is a cause for concern in the early months of 1983. "As well as the export successes of roofing material and carpet underlay, most of the industrial division's products enjoyed a better sales year in 1982. but profitability was achieved only through a cost-reduction exercise which involved redundancies early in the year at the Woolston, Christchurch factory. "After another disappointing performance the Victory Engineering subsidiary closed its Auckland non-fer-rous metal foundry in December."