Feltex expects sales to exceed $1 billion

Press, 17 November 1987, Page 29

Feltex expects sales to exceed $1 billion

Feltex International’s sales will lift almost 50 per cent to more than a billion dollars, the chairman, Mr Peter Stanes, forecasts. He told the annual meeting of the company in Aufkland yesterday that Feltex was in good heart. < “The whole nature of Feltex has changed dramatically over the last three years,” Mr Stanes said. Profits had increased 250%. (On September 1, Feltex announced a net operating profit before extraordinary items of 574.7 M.) “Yet the real benefits are still to come as the profir contributions from new investments and activities come to account.”

At the beginning of the year, management set demanding targets for all operations, and with a third of this financial year over performance to date confirmed that the. strategies adopted and the action taken were right for Feltex, Mr Stanes said. “Your directors are confident that profit growth will be maintained.” Mr Stanes said that, as a manufacturer, Feltex would be little affected in the short to medium term by the world sharemarket decline. "It is too early to calculate how Feltex might be affected in the longer term by any world recession which might develop. “However, the geographical spread of Feltex and

the strong market positions of the varied activities are expected to give a significant degree of insulation in such an event." Feltex had adopted a strategy of becoming a transnational manufacturer and marketer, focusing on market segments in a number of selected countries. "This was because of profit volatility due to a floating dollar when exporting a significant percentage of our output, and secondly, because of the limitations of the small New Zealand market." The strategy had already generated handsome returns. Mr Stanes said that Feltex Intended however to retain and, where possible, further develop a strong and profitable manufacturing base in New Zealand.