Business news in brief

Press, 10 March 1984, Page 22

Business news in brief

Scott special Scott Group, Ltd, has declared a special dividend of 20c a share (40 per cent), payable on March 27, and confirmation is being sought from the Department of Inland Revenue for the payment to be tax-free. The intention to declare this dividend was first announced on July 21, 1983, but the dividend freeze regulations prevented the company from proceeding with it until the regulations expired. The ex dividend date is March 9. INL chairman Independent Newspapers, Ltd has appointed Mr J. A. Burnet the company’s chairman in place of Mr F. H. Kember, who has reached the compulsory retiring age specified in the articles of association. Man. knitting Manawatu Knitting Mills, Ltd, says its 235,080 unsecured convertible notes will be converted to ordinary stock units

following the acquisition of more than 50 per cent of the issued capital of the company by Polo Investments, Ltd. A condition of the notes issue was such conversion should any party acquire more than 50 per cent of the capital.

No interest would accrue since the last interest payments and the new stock units would rank equally with the existing stock units, the company said. F. Richwhite staff The Auckland-based merchant bankers Fay, Richwhite and Company, Ltd, have announced three new appointments to their executive staff. Mr J. T. Carrigan has been appointed as a senior investment consultant with the firm’s money market division. Mr Carrigan was formerly assistant general manager, management services, for the Guardian Royal Exchange Assurance Group. Mr G. Kennedy is to head Fay, Richwhite’s new foreign exchange and futures division. Mr Kennedy was previously international operations mana-

ger for the major Australian merchant bank, Tricontinental Corporation. Mr A. J. Milton has been appointed a senior investment analyst in the investments division, a unit of the firm’s client services sector. Mr Milton was assistant manager for New Zealand for the National Mutual Permanent Building Society, and prior to this appointment had been managing director, Pacific Permanent Building Society. Vamgas profit Vamgas, Ltd, had an audited net group operating profit of sAust7.Bl million for the vear to December 31, up from H.39M. Turnover was J29.45M (112.98 M Tax was 85.54 M (12.82 M The directors say the increase in sales revenue is due to the start of crudecondensate sales and increased revenue from gas sales. During the year, the company spent $50.57M on fixed assets and development and 17.55 M on exploration and evaluation. The major portion of this expenditure related to activities in the Cooper and Canning basins. Chrysler record Chrysler Corporation, the third-fargest U.S. automobile manufacturer, earned about 3NZ1079 million in 1983, for its best vear ever. Its result pushed total U.S. auto industry profits for the year to a record level Chrysler’s report is the latest sign that the U.S. industry, mireo.in a depression for four years, has pulled Itself into a sustained recovery. Chrysler’s earnings compared with a $262M profit in Chrysler said its performance included a $343M loss resulting from its 15 per cent ownership of the French carmaker, Peugeot. Kupe deal Southern Petroleum NL has E‘ ised 5 per cent of the capital of Kupe Petroleun NL. Further purchases of shares were proposed although no ceiling had been determined, said the Southern Petroleum directors. “The purchases have been made to expand the exploration exposure and exploration activities of Southern Petroleum,” they said. Southern Petroleum said it hoped to involve Kupe in the “identification and participation in further exploration opportunities not currently available to it." While no formal association with Southern Petroleum NL is envisaged, the Kupe directors said they were seeking further opportunities for exploration, beyond their current rights in licence areas 38109, 38116, 38073 and 38058. Current cash reserves invested by the company represented 11.7 cents per share, with all obligations met in respect of the Taimana and Tahi wells. Aircraft contract McDonnell Douglas has been awarded two contracts totalling fNZI.69 billion for production of 155 F-18 aircraft and 13 F-18 trainers, according to the Pentagon. The F-18 is the Navy’s new fighter-bomber and it plans for a total of 1366 of the carrierbased planes. Production of the F-18 is in Saint Louis. Alliance executive Mr A. D. Murdoch, aged 35, manager in Oamaru for Waitaki N.Z. Refrigerating, Ltd, has been appointed chief executive of the Alliance Freezing Company, Ltd. He replaces Mr J. F. Barnes, who has resigned because of illhealth.

Sugar exports Improved Australian raw sugar production in 1984 was expected to allow increased exports to the Soviet Union, the Queensland Cane Growers’ Association annual conference was told by the Queensland Sugar Board member, Mr Harry Bonanno. Little sugar was available for development of non-traditional markets, he said. About 100,000 tonnes were sold to the Soviet Union to ensure continuity of access to this large and important market but no other initiatives were possible. It is expected that a recovery in sugar production during 1984 will allow for further development of this and other established raw sugar markets. Aust. M 3 up The rate of growth of Australia’s total money supply, known as M 3, increased 13.9 Ser cent in the 12 months to anuary, from 13.3 per cent to December and 10.2 per cent in the year to January, 1983, the Australian Reserve Bank said. The Federal Treasurer, Mr Paul Keating, said on Friday that the increase would be in the order of 14 per cent, well above the Government’s growth target of between 10 per cent and 12 per cent, itself revised upward by one percentage point last December. But the high figure was because of technical factors and more modest growth could be expected in the coming months, with no major disruption to liquidity during the June quarter tax-rundown period. Lusteroid sale Fletcher Challenge, Ltd, said yesterday that the remaining 612,676 ordinary shares in Lusteroid Holdings, Ltd, held by FCL, the Fletcher Trust and Investments Company, Ltd, and Wellesley Securities, Ltd had been sold in several parcels at a price of 32.25 per share. Citibank nod The Australian Federal Government has given conditional approval for the United Statesowned company, Citibank NA, to acquire the, CitiNational merchant bank. Citibank had applied for permission under Australia’s foreign investment guidelines to acquire from the National Mutual Life Association, the 50.1 per cent of CitiNational which it did not already hold. Under the proposal, part of CitiNational would be merged with another merchant bank, Capel Court Corporation, Ltd. Bougainville up Bougainville Copper, Ltd, increased its group net profit 388 per cent to 3NZ61.3M in the year to December 31, in spite of weaker metal prices and a 333.3 M jump in the tax bill at 352.7 M. Turnover rose 38.6 per cent to 3437.4 M.

Production improved 6.4 per cent to 636,932 dry tonnes of concentrate, containing 183,191 tonnes of copper, 18,002 kg of gold, and 47,414 kg of silver. A final dividend of NZ9c a share increases the annual rate from 3c to 15c a share. Tubemakers rise Australia’s biggest steel tube manufacturer and steel merchant, Tubemakers of Australia, Ltd, has posted a dramatic 231.4 per cent lift in net profit to sAust 10.32 million from $3.1 IM on a relatively small increase in business activity in the six months to December 31.Group sales for the period increased 28.2 per cent to 5335.70 M from $261.84M previously. The directors described the result as “pleasing” but said it needed to be seen in context with the interim results of the previous four years, including the historically low results of

the previous corresponding period. Tubemakers is a 49.75 per cent-owned BHP subsidiary. Aust, well flow Oil has flowed at a rate of 2077 barrels a day in a test at the Naccowlah South Three appraisal well in Queensland’s Cooper Basin, according to the well operator, Delhi Petroleum Pty, Ltd. The oil flow follows a gas flow reported last week and confirms the Naccowlah block in south-west Queensland as a significant oil field. Dehli says the well in ATP 259 P flowed 45.5 degrees api oil from the iurassic hutton sandstone at the 2077 barrel rate with water also being recovered at a rate of 109 barrels a day. Poseidon Poseidon, Ltd, the resurrected Adelaide goldminer and mineral explorer, showed no turnover in the six months to December 31, but still managed an unaudited group net trading profit of sAustl.6M down 70.5 per cent on the previous corresponding period. The company earned other income of S4M ($3.9M) and incurred an extraordinary loss of $190,000. No tax was payable and the dividend was again passed. Humes Humes, Ltd, the Melbournebased construction supplies group, increased its unaudited group net trading profit 56.8 per cent to sAustls.lM in the six months to December 31, on sales down 1.1 per cent to $346.2M. The company also incurred an extraordinary loss of $658,000 compared with a $56,000 profit in the previous corresponding period. The profit was after providing S3.BM more for tax at $12.9M, but $380,000 less for depreciation at S9.IM. A steady interim dividend of 4c a share (8 per cent) is payable on April 3. Brisbane brewer Castlemaine Tooheys, Ltd, the Brisbane-based brewer, raised its unaudited group net trading profit 13.1 per cent to sAust34.4M in the six months to January 31, after gaining an increased share in the declining national beer market. Turnover rose 13.6 per cent to $522.9M. Extraordinary profits totalled S2.IM ($576,000 previously) and other income SI.7M ($3.5M). The profit was after providing S4.IM more for tax at $29.8M, and SI.6M more for depreciation at SB.2M. A steady interim dividend of 13c a share (13 per cent) has been declared on capital increased by the one-for-six bonus issued and is payable on May 4.

Tooth div. up Tooth and Company, Ltd, the Sydney-based brewer, has raised its interim dividend from 15c to 17.5 c a share (17.5 per cent) in spite of only marginally increasing its group net trading profit 1.5 per cent to sAustl7.sM in the six months to December 31. Turnover, including excise, slumped 50 per cent to $190.2M. Other income totalled $6.3M (SS.2M previously), and extraordinary profits were $390,000 ($11.7M). Depreciation fell $67,000 to $i.9M, interest dropped $5.3M to J9.6M, but there was a tax credit of $889,000 (SI.6M provision). The dividend is payable on May 25. Warner’s contest Warner Communications plans to contest in court a Federal Trade Commission decision blocking a joint venture with Polygram Records to merge their recorded-music businesses. The FTC said earlier in Washington that its members voted in closed session, 4-1, to file in federal court later this week for an injunction to block the merger, scheduled to be completed on March 12.