Abcal ahead in first quarter

Press, 6 May 1983, Page 10

Abcal ahead in first quarter

Associated British Cables, Ltd, was ahead in total sales and profits in the first three months of the financial year, compared with the same period last year, said the chairman, Mr H. W. Revell, at the annual meeting yesterday. This was in spite of the lower activity in general wiring, which would remain so until there was an improvement in the economy, involving the building industry, motor-vehicles, and ap-

pliances.

The mains cables division would continue to benefit from the major energy projects this year, and had strong forward orders from these projects and power authorities, he said.

The inability of both the Australian and New Zealand Governments to gain union acceptance in containing costs was of concern. Because of the Closer Economic Relations agreement with Australia and the

group co-operation with BICC companies in Australia, Abcal was watching with interest the problems now becoming obvious as union pressure mounted on the Australian Government after the summit conference (between unions, employers, and the Government,) in Canberra a few weeks ago. Containing costs was vital to both countries to' compete in trans-Tasman trade as well as in third markets,

Mr Revell said.

“The price freeze has prevented the company from recovering a number of increased costs, and on imported material only the unit of cost increase has been able to be applied as a surcharge thus reducing margins as a percentage.” Abcal’s staff had equally been affected with incomes frozen and likely to continue to be except for perhaps a minor adjustment or further tax change, Mr Revell said.