Business CMI begins well

Press, 12 July 1984, Page 32

Business

CMI begins well

PA Auckland The 1984-85 financial year has begun strongly for Consolidated Metal Industries, Ltd, with first-quarter sales well up to expectations, says its chairman, Mr Noel Barclay, in the annual report. >

Turnover is forecast to continue at a satisfactory level during the next few months.

Factors which might affect CMl’s profitability include the closer economic relations agreement with Australia, says Mr Barclay. “This company will undoubtedly be influenced as the C.E.R. agreement phases in and, although we cannot finally determine our course in our main manufacturing areas involv-

ing steel and wire until the base industries in New Zealand and Australia have negotiated an agreement, we are nevertheless already becoming influenced by the larger market and imports of finished products into this country.”

Mr Barclay says another factor in the year ahead will be the findings of an industry study into CMl’s main areas of activity. The company’s making representations to the Government to press not only for tariff controls to remain but also for positive quantitative restrictions on importers.

“The adverse effects of using only tariffs to control imports was amply demonstrated in Australia in the

metal trades industries during the 1970 s and early 1980 s.”

Mr Barclay says effective administrative machinery must also be established to allow a quick review of products which are being marginally costed and dumped on the New Zealand market.

Mr Barclay says CMl’s improved financial position (debt equity fell to 12.1 per cent from 20.4 per cent in 1983-84) will be used to modernise plant and equipment where appropriate. As reported, the group’s tax-paid profit rose 10.5 per cent to in the March 31 year. The balance shows current assets at $23,373,255 (1983, $20,026,626) and current liabilities $7,448,377 ($6,379,968).