Feltex looks to growth

Press, 12 November 1985, Page 26

Feltex looks to growth

PA Auckland Feltex New Zealand, Ltd, which reports a 16 per cent increase in domestic sales in the first quarter, is forecasting continued profit growth. The chairman, Mr L. W. Brown, -told the annual meeting yesterday, steps have been taken to reduce the fixed-cost base of existing businesses and major investments have been planned in new plants and businesses. Although domestic sales were 16 per cent ahead of last year, the stronger dollar meant exports were only marginally ahead of the corresponding period last year, he said. “Prices of New Zealand- ■ manufactured goods have been increased in overseas markets to ensure continued profitability but, inevitably, this is hav-

ing a depressing effect on sales volumes.”

Mr Brown said the added burdens of continuing high interest rates and a higher-than-expected wage round result confirmed that the buoyant conditions of last year bad ended.

Referring to investments in Australia, he said that the Rwas now strongly placed basic business of carpet manufacturing and marketing. The strong cash flow in the last financial year and the subsequent moves to release funds from properties, left the company in a strong financial position for further investment.

More than S4OM was committed before last June and more than S3OM had been planned for this year, said Mr Brown.