BL struggles back to profit

Press, 21 April 1984, Page 23

BL struggles back to profit

NZPA-Reuter London Britain’s state-owned BL car company (formerly British Leyland) has reported its first operating profit since 1978. Preliminary results showed a £4.1 million (about SNZB.9 million) operating profit in 1983 after a loss of £125.8 million the previous year. But taking into account all costs, the group, which has received more than £2 billion ($4.34 billion) in State funds over the last decade, had a pretax loss of £67.1 million ($146 million) in 1983. The Austin Rover car

division contributed to earnings, while Jaguar cars, whose overseas sales have increased dramatically in recent months and which the Conservative Government plans to return to the private sector, posted a £55 million ($ll9 million) profit. But the Land Rover and Leyland truck groups increased their losses, which have been blamed on the world recession which has cut markets for commercial vehicles. Analysts say BL’s future now largely depends on the sales achieved by its new medium-sized Montego model, due to be launched next week.