Alcan pays bigger div.

Press, 18 March 1985, Page 35

Alcan pays bigger div.

PA Auckland Alcan New Zealand, Ltd, plans to make a one-for-three bonus issue, which will be included for the higher final dividend, after more than doubling its total' net profit in the latest year. The group net equity profit rose 115.1 per cent to $8,567,000 in the year to December 31, including equity earnings down $282,000 to $48,000. The directors are recommending a 5c higher final dividend at 12c a share, 2c of which will be tax-free, increasing the annual dividend rate from 12c to 19c a share (38 per cent). Commenting on the ’’substantial improvement” in

the net profit, the directors say the upturn in the economy, particularly in the housing industry, which became evident towards the end of 1983, continued and provided buoyant trading. Costs were contained and there was a significant increase in sales tonnage. Demand has remained strong in the new financial year, although the high interest rates are expected to affect the housing industry, they say. ”In addition, cost increases are starting to flow through, therefore trading conditions are likely to be more difficult as the year progresses.” Sales rose 33.9 per cent to $94,168,000, and the final result was after providing

$1,898,000 more for tax at $4,174,000, but $121,000 less for minority interests at $131,000. The final dividend is payable on May 31, ex dividend and bonus on May 16.

Sir James Fletcher has retired as a director. Sir Alan Hellaby and Mr D. C. Thomas, the vice-president for Alcan Pacific, Ltd, have been invited to become directors.