Excellent half for Motor Holdings

Press, 16 August 1984, Page 22

Excellent half for Motor Holdings

PA Auckland Motor Holdings’ profit for the half year to September will exceed the profit it made for the whole of 198384 when after-tax earnings topped $l.B million. The chairman, Sir John Mowbray, disclosed this to shareholders at the annual meeting. “This should be one of the mqst profitable six months trading in the group’s history,” he said. “Prospects for the second half of 1984-85 are, however, difficult to assess. There is the effect of devaluation and a probable drop in demand for a period once pre-devaluation stocks are

through the pipeline. “However, the group has forward cover on orders at the time of devaluation and trading should be profitable for the next several months.” Sir John said devaluation would affect group operations in different ways. Higher petrol prices could improve motor cycle and smaller car sales' and farm tractor sales should benefit from improved farm incomes.

“Motor Holdings (Aviation) will benefit through its export service and parts activities, but not the sale of light aircraft. Motor Holdings’ (Machinery) market is basically dependent on the

general level of economic activity in sectors it serves and these are currently quite buoyant.” He said shareholders should look at a company’s performance over a period of, say, three years rather than on a year-by-year basis. This meant dividend cover could be seen as being high in good years, allowing the dividend to be maintained during difficult times.

Sir John said the new Government had yet to say whether it would carry out the Industries Development Commission plan for reorganisation of the motor industry released before the change of Government