COMPANY PROFITS

New Zealand Herald, Volume LXXIII, Issue 22583, 23 November 1936, Page 5

COMPANY PROFITS

AUSTRALIAN IiIiCOVERY

INCREASES IN DIVIDENDS TRADE OUTLOOK BRIGHT The firmer markets for the principal commodities and the improvement in the trade outlook generally has already been reflected to a considerable extent in company profits and the question which is now exercising the mind of the investor is where the movement "ill end. The shares of many leading industrial companies, particularly those of Australia with a largo earning capacity, have reached high levels and the more cautious section of the investing public is inclined to the view that many arc over-priced at their present levels. Itccemly a Melbourne stockbroking firm, .Messrs. H. liryon Moore, Day and Jounneaiix, in their monthly review, published a comparison of tho results of ().'! representative Australian companies. The following abridged table shows tho movement of profits and dividends through tho depression period to the current year, the thousands being omitted in the case of total capital and total net profits: 1928-29 1931-32 1935-30 £ £ £ Total ord. cap. 56,191 CS.SS2 65,869 Total net profits after pf. diva. 7,727 3,528 5,753 Percentage n.p. to ord. cap. 13.5 6.00 8.73 Av. ord. div. . . 10.39 5.10 7.52 The comparison, states tho review, shows that the process of recovery is still under way. Xor is tho improvement sectional. Hero and there individual companies have rogis-tercd smaller profit figures, but tho cause is nearly always well known. Such variation from the general line is an ordinary phenomenon even in normal times. While it is plain, continues tho review, that there lias been a too-liberal discounting of the future of some stocks, it is equally obvious that the full possibilities of others have not been calculated. Tho strong riso in profits and the healthy increase in dividend distributions are in some measure compensating a host of investors for tho lean period of the depression. The recent currency agreement between Kngland, America and France is the brightest development since the crisis. It clears a lot of obstacles out of the way to a consideration of resumption of unrestricted international trading. Given an expansion of business between tho world's trading countries, Australia must benefit.

FOREIGN EXCHANGES QUOTATIONS IN LONDON (Received November 22, 7.3 p.m.) LONDON, Nov. 21 On tho foreign exchange market today the following quotations ruled, yesterday's prices being shown in parentheses:— New York, 4.89 J dollars (4.895); Paris. 100 3-16 francs (103 3-16); liatavia, 9.01 i guilders (9.01). NEW ZEALAND QUOTATIONS The Associated Banks (other than the Bank of New South Wales) "quoted the following dollar rates on Saturday, on a New Zealand currency basis, subject to alteration without notice: Selliiu;: United States Canada On demand . . 3.02 l / a T.T. . • • ■ 3.U2 y.oivi 'On demand .. 3.90% 3.95% Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, Auckland. They are subject to alteration without notice: — To £1 N.Z. T.T. On Demand Currency Selling Buying; Sellintc U.S.A., del. . 3.92 3.911% 3- 2% Canada, dol. . 3.01,4 3 - ut > Austria, sch. . . 20.18 r,a'i?rt Belgium, belga 23.099 Czecho'vakia, cr. 110.02 1 J, 0.07 Denmark, kr. . 11.803 18._G3 IH.J, France, fr. .. 84.25 Germany, r.m. . o.(»b8 J]'.;!, Holland, n. .. 7.217 --1 Italy, lire . . 74, 41 < Norway, kr. " 35.891 16.241 35.001 Sweden, kr. .. 15.480 15.81-1 3 5.499 Switzerland, fr. 17.001 !<• ■»» Papeete,' fr." ! ' 83*03 llowCS dol IS2M2 JTO «JMJ S&.TSU" 3 l: p Japan, yen .. 1. 1 Shanghai, dol. . IS .>-10 1 * _o-32 18 10-04 Singapore, dol. 35 13-04 31/» Chefoo, dol. .. 18 20-04 1 < 2,.-32 18 <-10 The cost in New Zealand currency of the pound sterling, and of the principal overseas units, on the latest quotations, is as follows: — Present. Price Tar London, pound .. 10.05 20 0.00 Australia, pound .. 19 10.81 20 0.0 l-iji, pound .. 22 ...0(1 20 0.00 New York, dollar .. ;> \•" } j | i|] Montreal, dollar . . " 1 •'•' j* } t '\\h Paris, franc . .. 0 _.M 0 Berlin, reichsmark .. - Copenhagen, krone .. 1 ]■•••} f. At; Yokohama, yen . 1 - Uob CUSTOMS EXCHANGE RATES Rates of exchange ruling at tho announced dates of departure of vessels named are shown 111 tho following table. They are subject to confirmation by the Customs Department when the exact timo of departure is learned. I 1 inallv declared rates are marked* Port Bowen, Canada, dollars .. *j•S'' Port Howcn, America, dollars .. 4>jv» Tekoa, Ainerira, dollars .. .. 4.h.» Tokoa, Canada, dollars .. .. Anranvri, America, dollars .. .• 4-£" Anransi, Canada, dollars .. 4>" Sydney Maru, Japan, yen .. .. 140 CALL AND DIVIDEND LIST Divldonds— '^ oß ,. Ley land-O'Brien —ft p.c. p.a. .. Nov. 25 West port Coal —final, (id a share; bonus, 5s a share .. • • Nov. 2o Nat. Bank A'asia —int., 6V» p.c. p.a Nov. 25 Tattersfield, Ltd.—B p.c. p.a. .. Nov. 25 Broken Hill Pty.—half-yearly, Is iJd a pharc; con., 6d ft share Nov. !2o National Timber—int., 2 1 /, p.c. Nov. 25 E„ S. and A. Bank—final, 2V» p.c. (sterling)) .. . • J; nv - '-'J Dalcfety—final, 3 1 / a P-C. . Nov. M C.illespic's Beach—ld a Rharo .. Nov. 20 Bank N.S.W.—quatterly, 6s a share, making o'/i PC. tor year • • • * Nov. 127 Wilsons Cement—int., 9d a share Nov. 27 Queensland Insurance —final, 4 p.c., and bonus, 2 p.c. .. Nov. 27 Farmers Trading—prcf., A and B, .5 3-5 p.c.; C, 6 pc. .. Nov. 30 Dunedin Brewery—int., 2 1 /, p.c. Nov. 30 ilonrv JoncH —final, Is Gfl a share Doc. J Claude Neon—final, 4 p.c. .. Dec. 2 North Broken llill—4s a share Dec. 8 N.Z. Breweries —int., 4 p.c. . Dec. 0 Placer Development—int., fiO cents Dec. JO Bulolo—int., 1 dollar 40 cents Doc. 10 Broken Hill South—2s Odarhare Dec. 11 Bank NX—int., ord., Is a sharo; D mort., 3 3 /4 p.c Tlec. 12 Kauri Timber —5 p.c. .. .. Dec* l/ Mount Lycll—final, Is 0(1 \ Bharo Dec. 21 Morris Hedgtrom—int., 2 1 /, p.c. Dec. 31 P. and 0. (deferred stock) —& p.c p.a. .. . • • • D®o- - „ Dominion Breweries—new, 28 Od a share Nov, 80 BRITISH WAR LOAN British Wireless RUGBY. Nov. 20^ War loan, 3J per cent, was quoted to-day at £lO6 12s 6d, compared with £lo6'l3s 9d yesterday.