Atlas in loss again

Press, 19 July 1983, Page 23

Atlas in loss again

PA Auckland Hit by heavy product discounting, high promotional costs, and tight liquidity, Atlas Corporation has turned in a trading loss of $98,000 for the year to March 31. Final dividend is being passed, making the 4 per cent interim the total for the year. The directors say that trading in the second half was extremely difficult because of over-production by some manufacturers of both brown goods and whiteware. “This led to severe discounting in colour television, audio, and electric ranges. “In addition, the company was faced with exceptionally high promotional expenses in establishing the N.E.C. brand of consumer electronics, and high interest costs because of tight liquidity and extra stocks. “Together, interest and

advertising were $1.4 million higher. “Since balance date the market has continued to be difficult, but the company is currently trading profitably.” The latest loss compares with last year’s trading profit of $1,034,000 and comes after a first half profit of $325,000. In addition the company has sustained extraordinary losses of $758,000 (previously a profit of $294,000) principally on the costs and write downs related to the closing of the Masterton operation. The directors say the company is gearing up for the introduction next month of a full range of Simpson whiteware. “Whiteware is in the forefront of trade liberalisation under C.E.R. “Simpson are the largest manufacturers of whiteware in Australasia, and Atlas’s

appointment as their distributor in New Zealand offers a very substantial growth opportunity.” Shareholders’ funds have risen from $6,896,000 to $7,522,000 and gross assets from $18,083,000 to $22,819,000.