Autocrat loss

Press, 3 July 1986, Page 28

Autocrat loss

PA Wellington Reduced tariffs and removal of import licence restrictions contributed to a trading loss by Autocrat Sanyo, Ltd, of $8,850,000 ($641,000 profit the previous year) for the year ended February 28. Total loss after extraordinary items was $9,804,000 ($1,093,000 profit) and no dividend will be paid for the year. The company said that the loss arose from changes resulting from Industries Development Commission recommendations, and consequent Government activity. During the period import licence restrictions were removed and tariff rates cut. All necessary steps toward full recovery were being taken. Sales at $50,672,000 ($63,521,000) were down 20.2 per cent. The net extraordinary loss of $949,000 ($836,000 gain) arose from an accounting adjustment of the exchange rates for foreign currency liability. This, despite favourable exchange trading during the year, became an unrealised exchange loss at bal-

ance date. Abnormal losses of $5OOO ($384,000) were also reported. Autocrat Sanyo’s managing director, Mr R. H. Walker, said the company had undertaken a big reconstruction programme in the 1985-86 year. The costs of the reconstruction programme were exacerbated by the effects of higher interest rates, reduction in consumer disposable income and the perceived effect of GST, he said. Against the trend, the Sanyo business systems division continued to grow in all areas. Since the reconstruction of the consumer electronic and home appliance divisions began, staffing had been reduced by one third and surplus premises for those divisions had been disposed of in Auckland, Wellington and Christchurch. The main trading division, consumer electronic products, was back to profitable trading and margins would increase progressively over the next few months to reasonable levels, Mr Walker said.