BROKEN HILL PROPRIETARY

Dominion, Volume 30, Issue 264, 4 August 1937, Page 12

BROKEN HILL PROPRIETARY

Record Australian Profit Although not exactly surprising in view of the great activity in the building and other heavy industries, the net profit of £1,183,000 announced by the directors of the Broken Hill Pty. Co., Ltd., in a preliminary statement, is a striking result, says the Melbourne “Argus.” It is believed to be the highest profit ever announced by a publie company in Australia, and it establishes the Broken Hill Proprietary among the great enterprises of the world. The profit is equivalent to 22} per cent, on the capital of £5,220,000, or 10 per cent, on total shareholders’ funds of njore than £11,000,000. These percentages are a little lower than the actual figures because the company did not have the use of the whole of the 1935 new capital issue for the full year, the last instalment of 5/- having been paid on June 30 last. Investors have a very high opinion of the company. The possibility of another new issue of canital to finance further expansion at Newcastle and Port Kembla has been freely discussed, the belief being that the undisturbed profit and the provision for depreciation, large as they are, will be insufficient to meet the heavy expense which will be involved in ensuring an adequate supply of iron and steel to fulfil Australian requirements and also to cope with the demand for neighbouring countries.