J. H. Impey sales up, profit down

Press, 25 May 1984, Page 8

J. H. Impey sales up, profit down

James Hardie Impey, Ltd, the Auckland-based build-ing-supplies and hardware merchant, made a beforetax profit of $7,738,000 for the year ended March 31 — 13.29 per cent down on the previous year ($8,924,000). The amounts do not include share of associated companies’ profits ($lO,OOO, and $6OOO the previous year) or extraordinary items ($53,000 received, compared with $284,000 paid out the previous year). Sales, at $118,589,000 are up 10.57 per cent ($107,253,000), but the profit on these before taxation was down 29.13 per cent ($10,158,000 for the latest year compared with $14,334,000). The directors in releasing the figures, draw attention to the fact that interest payments for the latest year were $1,944,000, compared with $791,000 the previous year. They recommend an un-

changed final dividend of 9.25 per 50c share. This dividend is available to shareholders from realised capital profits and as such will be free of tax in shareholders’ hands. Hardie Holdings (NZ), Ltd, the major shareholder, is continuing to take dividends from revenue sources. W’ith the interim dividend of 6c a share, the total dividend for the year amounts to an unchanged 15.25 c a 50c share (30.5 per cent). The final dividend will be paid on July 10. The directors say sales volume was reasonably maintained although the pricefreeze resulted in difficult trading conditions in some areas, affecting both turnover and profit margins. Significant factors in the decline in profitability were the costs associated with the accelerated programme to elimiinate capital expenditure, and major development projects in the fibre-cement, plastics. and envelope businesses. "While no profit was earned by these projects during the year they are expected to

make a substantial’ contritution during the year endiig March 31. 1985, for which a significantly increased prefit has been budgeted,” the directors say. Tax was down more than 55 per cent ($2,420,000), compared with $5,410,000. The directcrs say this was because of tie maintenance of export sales and investment allowances. Asbestos fibre was elimhated from all building products from September last year, tie directors say. They also report: ® The commissioning this month of a new fibre-cemeit sheet machine, which will allow shift operation. ® The beginning of the manufacture of PVC fittings as scheduled in September, 198 J, with an expansion of moulding capacity Additional high-speed envelope equipment installed at Alex Cowan and Sons (N.Z) Ltd, from February 1. @ The relocation of James Hardie Electrical to new premises in Penrose in December, 1983, and the rationalisation of the electrical business. • The steady expansion of paint exports to Australia.