McKechnie 1:5

Press, 9 October 1987, Page 14

McKechnie 1:5

PA Wellington McKechnie Brothers (NZ), Ltd, the New Plymouth manufacturer of aluminum and copper products, lifted its after tax trading profit 11.4 per cent to $8403,000 in the July year ($7468,000 in tha previous year). ~ The directors nave announced a one-for-five bonus share issue, to be made after the payment of an unchanged final dividend of 6.scps on December 16. Before tax earnings were up 51 per cent to $14,800,000. Turnover was up 135 per cent to $97 million ($85.4 million) and 36 per cent of group sales were outside New Zealand. Exports from the group's New Zealand plants increased more than 20 per cent to 628.7 M. Shareholders* funds were up 21 per cent to S46M Earnings a share were 38.4 c (adjusted 39.6 c) and net tangible asset backing a share was $259 (adjusted $2.03). The company’s tax liability jumped to $6,367,000 ($2432,000).

Profit after tax and before minority interests was 115 per cent higher at $8,390,000 ($7519.000). Minority interests were a deduction of $287,000, 14.3 per cent more than previously ($251,000). The trading result was reduced by an extraordinary los of $722,000 (nil). The company reported a small increase in its bottom line to $7,381,000 ($7,268,000). McKechnie will close the books for entitlement to the bonus issue on December X The existing shares will go ex-dividend and ex-bonus on November 30. The company chairman. Sir Roderick Weir, said that in the past year McKechnie Brothers made major capital Investments in new plant and equipment as well as buying two Sydney businesses, Coiliertoois Holdings, and Sulco Distributors. ■ ■“A major investment has been a new high-technology aluminium anodising plant at New Plymouth at a cost of S2M,” he said. It allowed the company to offer a new range of products for prestige commercial

buildings. The company had : expanded Its brass and bronze melting capacity at its Christchurch plant, allowing it to offer a bigger range of products, especially for expurt Two more major capital projects were the enhancing of the aluminium extrusion facility in New Plymouth and improvement of productivity in Melbourne. Sir Roderick said growing Imports into New Zealand and a high New Zealand dollar would cause difficulties for McKechnie Brothers and some of the sectors it supplied. “However, the commercial building industry and general home improvement is liktiy to continue on a reasonably bouyant plane.” Analysts were saying that the Australian economy would improve with a lower Australian dollar and increased investment in manufacturing, he said. “We see this as a benefit to our Australian operations. We are already exporting products made in Australia to - several countries.”