ICI sales and profit ratio up

Press, 3 February 1984, Page 10

ICI sales and profit ratio up

PA Wellington ICI New Zealand, Ltd, started the new financial year with rising sales and a better profit-to-sales ratio, the chairman and managing director, Mr P. R. Demaine, told shareholders yesterday. He said there were signs late last year that the economy was beginning to recover. Results for the December quarter compared favourably with the low figures recorded the

previous year. Export sales were slightly down, but were still at a reasonable level. “In all areas of business demand for the company’s products is in line with, or above, budgets,” he said. The company expected to trade all year under a system of price surveillance. “This will place burdens on managers and restraints on any ability to regain margins.”

Mr Demaine said that although he might appear bullish in his prediction, comparisons were against a background of depressed trading in the first part of the 1982-83 year. In spite of the lower business activity, he believed the 1982-83 result sat-

isfactory. The company’s gearing ratio of term liabilities to funds employed was 6.8 per cent, the lowest for many years.

Demand for explosives, resins, and health care divisions’ products had firmed in recent months, while the YKK zip-fastener joint venture made a good start and the Julia Myers wallpapers were in much demand.

Dulux paints were benefiting from more buoyant conditions in the car and housing markets, and a better spring meant ICI Tasman products and sales were ahead of the previous year.

UPEC Industries plastic pipes were much in demand and production facilities were being improved.