COMPANY EARNINGS

Timaru Herald, Volume CLV, Issue 22789, 13 January 1944, Page 1

COMPANY EARNINGS

Trend In Australia Financial results of public companies in Australia to 1943 show a changed trend compared with the previous year. Aggregate net profits, which declined sharply in 1942. tended to recover. The effect 'on dividend rates was toward stability rather than improvement. An analysis, embracing a total ot 473 companies representing all States, shows that 60 per cent, disclosed increased net profits and 38 per cent, reported decreases.” states the SydncMorning Herald." These proportions almost reverse the trend of 1042 The better showing of net, profits is no' extensively reflected in distributions to shareholders. More than half tht companies maintained dividends at the previous year's rates. 18 per cent, paid higher rates, and 19 per cent, paid lower rates. In 1942 the proportions were 42 per cent.. 11 per cent., and 36 per cent, respectively. Resources of a large proportion ot companies were employed, directly er indirectly, on war or essential services. Heavy Government expenditures under manv of these heads involved high turnovers, record levels being frequently reported It was this factor, more than profit rates, which, over a wide field, were controlled by the authorities, that produced better net earnings. Gross profit margins, as a whole, were on a much reduced scale.