Firestone 17c dividend

Press, 21 November 1986, Page 10

Firestone 17c dividend

PA Wellington Firestone NZ, Ltd’s profit before extraordinaries fell 40 per cent to $4,495,000 ($7,444,000 last year) for the year to October 31, the company said. The directors would propose a single final dividend of 17c a share (last year 17c total). Turnover increased to $109.82 million ($103.08 million), but pre-tax profit fell to $7,905,000 ($12,879,000). Tax of $3,410,000 ($5,435,000) was provided for. Extraordinary income of $1,349,000 (nil), being

the reversion of surplus funds in a superannuation plan which no longer has any members, gave the company a final profit of $5,844,000 ($7,444,000). Depreciation of $2,207,000 ($1,944,000) was provided for in the accounts.

The first half year was affected by a lengthy strike of the Canterbury Rubber Workers Union, which some Firestone employees belong to.

The company recovered strongly in the second half, but was unable to adequately supply all

markets with a complete range of products, as stock ran down during the strike period. As a result profit after taxation was down on the previous year, Firestone said in a statement to the Stock Exchange. Some borrowing was needed during the year, adding interest costs, but the borrowing was paid off by the end of the financial year, with enough funds left over to pay the full year’s dividend.

Demand for Firestone’s products was strong through the whole year,

with only vehicle assembly manufacturers’ requirements weakening towards the end of the financial year. The trade, or replacement market, was affected by strong price competition, but Firestone effectively met that competition with increased market share in both new tyres and retreads, it said.

Exports continued strongly because of the quality of the New Zealand product, Firestone said.

The dividend will be paid on December 19.