Firestone’s div. steady: profit jumps

Press, 25 July 1984, Page 28

Firestone’s div. steady: profit jumps

PA Wellington Firestone NZ, Ltd, has more than doubled profits after tax for the six months ended April 30, compared with the April, 1983, period. The unaudited profit was $2,950,000, compared with $1,302,000. In the report, the chairman, Mr R. L. Deal, says that in the first six months of this financial year demand for the company’s tyres, tubes, retreads, and related services has been exceptional with sales increasing rapidly. “To meet this demand we are investigating methods to increase our production capacity which may entail considerable capital investment and, as a result, dividends are being maintained at their present level.” However, the interim dividend of seven cents a share will be payable tax

free from profits on the sale

of properties. These profits of $2,069,412 were reported in the 1983 annual report as being from the sale of 13 stores under an 18-year sale and leaseback arrangement. In the first half of the 198283 year, the dividend was also 7c and was tax-free. Mr Deal says that in addition to the increased trading results in the period to April, profits have also been assisted by the elimination of all borrowed funds which has had the effect of reducing interest to $17,000 (1983 half year $591,000) and foreign exchange losses to $13,000 after tax (1983 half year ($663,000). “We expect the demand pattern for Firestone’s products and services to remain strong for the foreseeable future and for results for the full year to continue at the first half’s buoyant level,” he says.