Lane’s profit slips to $1.85M loss

Press, 10 March 1988, Page 26

Lane’s profit slips to $1.85M loss

PA Wellington Auckland-based Lane’s Industries slipped from a $801,555 profit to a $1,855,454 loss in the halfyear ended December 31, 1987. But directors reminded shareholders a large amount of income comes in the second half from seasonal orchard operations. "The half-year result does not include accruals of this income, and it was also adversely affected by the poor final returns from the 1986-87 kiwifruit crop,” according to the chairman, Mr E. B. Allison. “Directors view with concern the uncertain fac-

tors that they expect will markedly affect the final result for 1987-88 and a lower profit is forecast." In the last June year Lane’s reported earnings of $3,026,000. The main factors affecing performance included falling retail demand, uncertain horticultural crop returns, and unstable exchange rates. On the other hand, the company’s activities in the building services division had continued to grow profitably, said Mr Allison

In addition, he said, there had been considerable development of the kiwifruit servicing operations, including orchard

management which would result in higher profits from the existing capital base.

“Our main activities are well managed and well positioned in their respective markets and normal trading conditions will see these contribute satisfactorily to the group.”

Turnover for the half year was up from $18,307,529 at $16,756,348. No • tax was payable. Minority interests took $13,408 (previous corresponding half-year, nil). In the previous period extraordinary items of $280,000 expanded the bottom line to $1,081,555. There were no such items in the latest period.