Owens profit up 17.8% to $7.1M

Press, 1 August 1987, Page 29

Owens profit up 17.8% to $7.1M

PA Wellington Owens Investments, Ltd, has increased its total profit by 17,8 per cent for the year ended March 31, 1987, to $7,133,000. The result represents an earnings rate on shareholders funds of 18 per cent. Directors are recommending the payment of an unchanged dividend of 6c a share, with the option of bonus shares in lieu, to be paid on September 17. Gross turnover increased to $394 million from $309 million and shareholders funds were up $7,214,000 to $46,722,000. But pre-tax profits were down to $214,000 from $3,362,000. Income tax credits added

$3,534,000 (last year $889,000), minority interests added $3,245,000 (last year took $179,000), and share of associated companies retained profits added $140,000 ($1,983,000). There were no extraordinary items in either year, so the bottom line was $7,133,000 against last year’s $6,055,000. The profit included a provision of $4,742,000 for restructuring of the group’s manufacturing companies, the chairman, Mr R. A. Owens said yesterday. “In a perfect world employers would have the same competitive pressures. But under New Zealand’s economic climate this was not the case, especially when com-

peting against manufacturers in the Pacific Basin,” Mr Owens said. "Unless there is some degree of protection for manufacturing in New Zealand, it will not survive and Owens Investments, Ltd, will be looking to reduce its investment in this sector,” he said. The company, which employs more than 2600 people, is now concentrating on the prime business areas of transport and property development. Long term property investments in Australia were made during the year, but the company’s 35 per cent stake in property developer Cromwell Corp., Ltd, was sold in July, 1986, the managing director, Mr R. H. Fisher, said.