ASTEC loses $3.8M, but expects pick-up

Press, 16 July 1987, Page 27

ASTEC loses $3.8M, but expects pick-up

PA Wellington Asea Tolley Electric Co, Ltd, has announced an interim loss of $3,805,000 for the six months ended May 31. This compares with a profit of $502,000 for the corresponding period last year. Directors recommended that no interim dividend be paid. Turnover was $39,491,000 ($40,098,000) and the accounts showed an after tax loss of

$3,662,000 compared to last year’s profit of $1,154,000. Result before extraordinaries was a loss of $3,805,000 against last year’s profit of $222,000. While there were no extraordinaries this period, an amount of $280,000 last year took profit to $502,000. The company’s chairman, Mr Lyn Papps, said many difficulties had been experienced last year and had carried over into the early part of

1987. Abnormally high interest rates had also affected the company adversely, Mr Papps said. But prospects for a return to profit in the second six months were improved since the company underwent major restructuring earlier this year, he said. “However, it was not anticipated that the second half result would compensate for the loss in the first half of the year,” Mr Papps said.