COMMERCIAL

Evening Post, Volume CXXX, Issue 80, 1 October 1940, Page 12

COMMERCIAL

IMPORT PROBLEMS BOOTH, MACDONALD, LTD. Booth, Macdonald, and Co., Ltd., machinery manufacturers, Christchurch, earned net profit of £5214 in the year ended June 30, 1940., against £1044 last year. Gross profit was £67,504, against £65,692 a year ago. Net profit was struck after payment of £5310 in debenture interest, and has been applied, after provision of £1750 for taxes, in reduction of the debit balance m the profit and loss appropriation account, now brought down to £36,654. Directors propose to submit to preference shareholders a plan permitting elimination of the balancesheet debit by reduction of preference capital to 15s a share. The report states that the year's credit balance, which must be regarded as satisfactory, is the result of a reorganised policy now in operation. Trading conditions had been difficult, due to import control and the war. Imports of heavy machinery had been curtailed and the resulting loss in turnover had had to be made up in manufactured lines. Production problems had been considerable because of difficulties in importing steel, but they had not been insurmountable. Complete reorganisation since last Noyember had started improvements which the directors hope will be maintained. In spite of reduced turnover, gross profit has improved to enable the company partly to take care of increased costs. Shareholders are to be asked to m- . crease the directors' fees to £500 a year, the contention being that the existing fees of £150 have been out of all proportion to the work and responsibility involved. LARGE CHEESE OUTPUT "Provided that the seasonal conditions continue to be favourable, there is every prospect that the company will produce 4000 tons of cheese in addition to the 14,569 tons which represented the output of its cheese factories last season," states Mr. C. J. Parlane, general manager of the New Zealand Cooperative Dairy Company, Limited. Of the 24 factories of the company all but one are working full vats. With an output of nearly 19,000 tons of cheese from one company, the indications were that the request for an increased output of 10,000 tons from the Dominion would be complied with. Mr. Parlane paid a tribute to the efforts made by the farmers to respond to the appeal. RECORD TEXTILE PROFITS. A record profit of £117,975 was earned by Yarra Falls, Ltd., textile manufacturers, Melbourne, for the year ended June 30. This compares with £115,433 in 1939. An unchanged dividend of 10 per cent, was paid, requiring £100,000, and £15,000 was transferred to reserve. BRUNNER MOND INTERESTS. Brunner Mond and Company (Aus- ' tralasia) Proprietary, Limited, Wellington and Auckland, will cease to have a place of business in the Dominion of New Zealand. The business of the company will be carried on as from September 30, 1940, by Imperial Chemical Industries (N.Z.), Limited, in Wellington and Auckland. '