BRITISH TRADE

Evening Post, Volume CXXV, Issue 143, 20 June 1938, Page 12

BRITISH TRADE

COMPANIES' RESULTS INCREASE IN PROFITS (By Telegraph—Press Assn.—Copyright.) LONDON, June 18. The share markets have closed cheerfully, but business is still negligible. The defence loan has not only revived the morale of investors, but also is an impressive demonstration to foreign Powers of Britain's financial strength. The Government is now financially well ahead of its re-armament task, and will accelerate spending with a view of mitigating the business recession. Following hard upon the outstanding success of the defence loan has come a batch of excellent company results. The General Electric Company's profits touched a record of £1,772,000. Reserves have been further strengthened by the allocation of £ 100,P00 from revenue, bringing them to £4,500,000, while current assets are higher at nearly £8,000,000. The works are fully employed, necessitating the recent extensions. Overseas business has continued to improve considerably, exceeding any previous year, New Zealand, Australia, Argentina, and India being especially good customers. Boots Drugs similarly report a record volume of sales. Callenders Cables show the largest gross profits in the history of the company, with a substantial increase in its New Zealand, Australian, and South African business, and is still obtaining satisfactory orders. . ' The "Economist's" analysis of the results of 79 companies announced dulling the week shows an increase of 12 per cent, compared with last year. The total profits of 1248 companies analysed since January 1 amount to £202,000,000, compared with £179,000,000 in the pre-| vious year. The feeling of the commodity markets is more cheerful than for. some time.

BANKS' REPORTS

INDUSTRY IN BRITAIN

Extracts made from the latest reports of British industries as furnished to the Midland and Westminster Banks are as follows: — . Coal.—"ln the export trade, prices were usually unchanged and firm, but were not sufficiently attractive to induce a general buying movement. A few important contracts, however were renewed during April. Collieries were well engaged on existing contracts, under which good supplies were still being shipped, but the outlook was less satisfactory, on account ot the policy of new business. . Iron and Steel. —"No extensive buying is taking place (Barrow-in-Furness) as heavy purchases were made at tne end of last year for requirements dur]ng 1938. A good deal of activity prevails at the steelworks, with signs of a slight improvement in the strip trade." Birmingham reports: Busitiess remains quiet, but a confident undertone prevails. A long period of stabilised prices is regarded as resnonsible in part for the extsting slackness. It is anticipated that consumers of aemi-finished steel, small bars, strip, and'pig-iron will shortly have absorbea their present stocks and will then re-enter the markets. The growing n«eds for re-armament work are also expected to affect beneficially gome seditions of the trade." . Motor-ears.—"Trade has improved generally (Birmingham). Motor-car Production has been maintained at a high level, ,and sales have both at home and abroad. Makers of heavy vehicles continue to be well employed. The cafll for motor-cycles from the Continent and the Dominions has increased, and orders from the home market are also improving. Woollens.—"Some relief from the tension surrounding the international situation has introduced a more optimistic tone into the Bradford trade. Returning confidence was evident before Easter, and became more pronounced subsequently, when an improvement occurred in the volume of inquiries for tops. In view of replacement costs, top-makers are adhering firmly to quoted rates, despite every indication that a considerable volume of business could be transacted at fractionally lower levels. Cptton.—"Spinners, manufacturers, and merchants in the Lancashire cotton industry have again experienced a very unsatisfactory period of trading, and in many respects March was one of the most disappointing months for 8 long time. The position of most producers further deteriorated. There was nothing in the situation to justity hopes of early improvement. In the unsettled state of international politics. and with the trade outlook generally so uncertain, buyers were not in the mood to anticipate requirements." „ Shipbuilding.—"For many months past, new shipbuilding contracts have not been numerous or large enough to replace those being completed, and the quarterly returns relating to tonnage under construction at the end of March show a considerable further reduction. The past month brought no change either in the conditions immediately affecting' the shipbuilding industry or in the more remote but even more important conditions adverse to the progress of world trade and industry in general." Sunderland: ""Yards busy." , , Shipping.—"Freight markets remained in an unsatisfactory condition during March, and there was still no check to the decline of values which had proceeded for nearly six months, the rales obtainable being m many cases Jess than half, of the best realised last year. The increased tension in international politics served to intensify the general lack of confidence which had already so seriously Impeded the flow of world trade.

COPPER OUTPUT

THE MARKET SURPRISED

(By Telegraph—Press Assn.— Copyright.)

LONDON, June 19,

Seven non-United States copper producers have sprung a surprise announcement that they are cutting output on July 1 from 105 per cent, to 95 per cent., lowering their output by 10,000 tons monthly. The deterioration of the copper position has been caused solely by the precipitate fall of United States consumption, and fears of American exports continue at a high level.

DREDGING SHARES IN LONDON.

(By Telegraph—Press Assn.—Copyright.) LONDON, June 17.

Share Quotations:—Clutha ■?i v 1 er ' buyers Is 7Jd, sellers Is 10Jd; Molyneux River, buyers Is ljd, sellers Is 4Jd.