CRA ready to hit acquisition trail

Press, 13 September 1988, Page 27

CRA ready to hit acquisition trail

CRA, the big Australian resources group, has hit the acquisition trail after expanding interim equityaccounted net profit to June 30 to a record sAust227.6 million (SNZ29I.BM) from sAust3l.lM (SNZ39.9M). “We’re looking for possible acquisitions where we can establish a competitive position and make the (purchase) at a realistic price,” CRA’s managing director, Mr John Ralph, said. The profit result, unveiled after a board meeting in Perth, marks a new stage in CRA’s emergence after a series of poor results in recent years.

Stronger metals prices, particularly for aluminium, higher production throughout the group, and

the lowering of company tax rates in Australia and New Zealand were major factors in the improvement. The rises in metals prices were partially offset by the increase in the value of the Australian dollar against the United States currency. Mr Ralph said a rise of USlc in the dollar equalled a loss of sAustlBM in net profits for CRA. The reduction of the tax rates added sAust2B.lM to the CRA interim profit before extraordinary earnings, which widened the result to sAust33l.6M, compared with sAustl3s.9M. The extraordinaries comprised profits of sAust7B.9 million from restating the value of net

future tax liabilities at the lower rates, and sAust2sM from the sale of the Misima gold prospect in Papua New Guinea, and a 9 per cent stake in Metal Manufacturers.

Commenting on the outlook for the current half, CRA said in a statement that commodity prices were expected to remain firm, even though they had retreated from peaks reached earlier this year. CRA has previously announced the postponement of an interim dividend until October 13, pending preparation of a share investment scheme.

However, Mr Ralph said the payout was unlikely to be below 18c a share. The group paid an interim dividend of 5c a share for the six months to June 30, 1987.