Sales Increased By I.C.I.A.N.Z.

Press, Volume CVI, Issue 31089, 18 June 1966, Page 18

Sales Increased By I.C.I.A.N.Z.

(N.Z. Press Association—Copyright) MELBOURNE, June 16. Sales of Imperial Chemical Industries of Australia and New Zealand in the six months to March 31 were 136,266,000 dollars, a rise of 22,290,000 dollars or 18 per cent on the previous corresponding period. But group net profit was only slightly higher. It increased by 51,000 dollars or 1.6 per cent to 3,310,000 dollars.

Interim ordinary dividend is again 3 per cent or 6 cents a share payable on September 1. Full rate for the last two years has been 7} per cent. Shareholders registered on July 21 will receive the interim dividend.

Latest profit gave a halfyearly earning rate of 3.62 per cent on higher average ordinary capital, against 4.19 per cent previously and 11.1 per cent in the 1964-65 full year when profit was 49,213,000 dollars. The figures were released in an interim report by the directors late today. They said that economic conditions reduced demand for the company’s products in the plastic and automotive industries, and manufacturing costs increased as a result of reduced output. Competitive imports at very low prices, in some cases at dumping levels, accentuated the effect on profitability. Directors added that sales in the rural sector reflected the serious effect of drought conditions prevailing in New South Wales and Queensland. Production difficulties on new plants and raw material supplies also affected results. The proportion of group net profit to sales declined from 2.86 per cent in the first half of 1964-65 to 2.43 per cent in the latest period. A tax saving of 1,552,000 dollars is a highlight of the half year’s accounts. This is a rise of 1,414,000 dollars on the tax saving on

investment allowances in the corresponding period. After allowing for the saving, the tax provision for the six months has been reduced by 807,000 dollars to 2,447,000 dollars. The tax saving more than compensates for an increase of 1,208,000 to 6,931,000 dollars in the depreciation charge for the half year.