GM N.Z. profit dips

Press, 27 June 1987, Page 26

GM N.Z. profit dips

PA Wellington Motor vehicle assembler, General Motors New Zealand, yesterday announced a 6.2 per cent profit dip to $13,202,917 for the year ended December 31. The drop in profit occurred in spite of a 6.6 per cent rise in sales to $249,680,664. Net profit before tax was up from $22,566,221 to $25,351,306, but the tax provision of $12,148,389 was up 43 per cent on last year’s figure. The company’s managing director, Mr Ray Halliday, said that while the over-all market had continued to contract, it was satisfying to see “acceptable levels” of profit being maintained. The present outlook suggested a difficult trad-

ing year for the motor vehicle industry, he said. However, GM directors were confident the company would further improve its market share through the year. Mr Halliday said the introduction of a redesigned Holden Gemini, along with the continued popularity of the Commodore and Barina models had assisted the company to maintain its position in the passenger car market.

In the commercial vehicle sector the contraction in size of market was more evident, he said.

The company now has total assets of $95.6 million which is down on last year’s $103.8 million. Total shareholders’ funds have increased from $38.9 million to $44.7 million. GM New Zealand is a wholly-owned subsidiary of General Motors Corp of Detroit.