LOSS INTO PROFIT

Evening Post, Volume CXXV, Issue 80, 5 April 1938, Page 14

LOSS INTO PROFIT

AUSTRALIAN IRON AND STEEL

Net profit of Australian Iron and Steel, Ltd., for the year, ended November 30, 1937, was £145,379, for 1936 there was a net loss of £29,733. Early in the year a fourth steel furnace was finished, and other works completed during the year include: Improvements to the boilers and the installation of a new' large-capacity boiler; remodelling of the finishing end of the 36-inch mill; a new coal storage bridge for the bulk handling of coal: and the acquisition of extra locomotives and rolling stock to deal with the increased.tonnages. The new by-products ovens began production on January 6 this year, and are operating satisfactorily. A second blast furnace; with ■ a capacity of 1000 tons of pig-iron a day, is nearing completion, and many other extensions and additions are proceeding. Shareholders ,will be asked to increase the nominal capital from £5,000,000 to £8,500,000 by creating 3,500,000 ordinary shares of £1 each. The directors state that it is not proposed to issue the whole of the new shares at the present time. Extensions to the company's works have been rendered possible by loans from the Broken Hill Proprietary Co., Ltd., and it is proposed io negotiate for the acquisition by that company of £2,000,000 in ordinary shares to liquidate most of the advances. The directors state that this would place the Australian Iron and Steel accounts on a more satisfactory basis. The Broken Hill Proprietary Co., Ltd., already owns the issued ordinary capital. , The general public are interested in the preference shares, which are quoted from time to time on the Stock Exchanges of New Zealand. Shareholders -will be asked to authorise their directors to vote on any contract with the Broken Hill Proprietary Co., Ltd., or with any associated company, notwithstanding that they may, be directprs or officers of 'such companies.