IW-Dow’s profit takes big dip

Press, 20 February 1986, Page 25

IW-Dow’s profit takes big dip

The profit of Ivon Wat-kins-Dow, Ltd, the New Plymouth chemicals manufacturer, dropped 29.6 per cent in the year ended December 31, in spite of a 22.1 per cent increase in sales. The IWDow directors announced yesterday that the figures include 13 months trading by Transpak Industries, Ltd, which was acquired on November 30, 1984.

Sales- rose from $65,743,000 to $80,275,000.

The profit after tax dropped from $8,198,000 to $5,774,000 and the provision for taxation was $1,616,000, or 25.0 per cent less, at $8,198,000. Profit before tax, down from $14.7 million to $10.6 million, was 27.6 per cent lower. The charge for depreciation rose from $1,934,000 to $3,472,000.

The directors said that cash flow was strong and close to the level of the

previous year, but profits fell sharply from the exceptionally high performance of that year. They said that Transpak made a significant contribution and helped counteract the. downturn in profitability in the agricultural chemicals section. A final dividend of He a share will be recommended to. the annual general meeting to be held on April 16. The total for the year therefore will be 20.5 c a share compared with 19c the previous year — an effective increase in pay-Out of 18 per cent It is covered 2.9 . times as against 4.8 times in 1984. The profit represents earnings of 58.5 c a 50c share (last year, 83.1 c), 14.9 per cent on shareholders’ funds (23.5 per cent) and 7.2 per cent on net sales (12.5 per cent).