FERTILISER COMPANY

Waikato Times, Volume 110, Issue 18394, 30 July 1931, Page 2

FERTILISER COMPANY

THE ANNUAL MEETING. NO DIVIDEND FOR YEAR. AUCKLAND, Thursday. Mr A. A. Ross, chairman of directors of the New Zealand Farmers’ Fertiliser Company,'' Limited, at the annual meeting, predicted an Improved demand during the coming season, coupled with substantial reductions in costs, which should enable the company to anticipate much better results at the close of the present financial year. “There seems to be an impression In the minds of many farmers," said Mr Ross, “that fertiliser manufacturers have been making big profits, and farmers have been asking for cheaper fertilisers, apparently under the impression that the fertiliser manufacturer has something to give away. I want to take this opportunity of telling shareholders and farmers throughout New Zealand that this Is a worng impression. We are told that Henry Ford makes only a net profit of £1 on each car, and that it Is the enormous production which gives him a satisfactory aggregate profit. I think I can say that the same policy obtains In the fertiliser industry. Increasing outputs from year to year have resulted in a steady lowering of .prices, as a review of the last few years will show." Falling Off in Output. Mr Ross continued: “The gross profit shows a falling off, compared with last- year, of £44,667, but against this overhead charges came down by £18,420, leaving a balance of profit amounting to £4649, after making provision for depreciation and income tax. To this figure must be added the profit carried forward from last year, amounting to £15,300, making a total available profit of £20,009, sufficient in itself to pay a dividend of over 7A per cent. The small profit earned for the year does not, however, justify your directors in recommending the payment of a dividend. In making comparisons it must be remembered that last year’s figures covered a period of 14 months. In reply to a shareholder the chairman said" that when wages were reduced by 10 per cent, a similar cut was made ip directors’ fees. Rotlring Directors Ro-eieoted. The retiring directors, Messrs G. T. Bayly, R. D. Duxfleld and H. R. Mackenzie, were re-elected unopposed, while Mr J. A. Duncan was re-ap-pointed auditor.