Dunlop looks to diversify

Press, 11 April 1979, Page 28

Dunlop looks to diversify

PA Wellington I Because there is unlikely ito be further growth in the jtyre market, the need for further diversification is stressed by the chairman of Dunlop New Zealand, Ltd (Mr J. E. S. Hammond) in the annual report. ' However, 30 per cent of J the company's activities are (already outside the tyre marIket, he says. I “This policy will continue, i using management strengths land international connections, particularly in sectors lof the economy with growth (prospects. j “At the same time we I shall continue to invest in tyre product and process development as and when op-i portunities present them-i selves. “The need for competitive! pricing serves to underline; the continuing need for thei company’s staff to work for| rising productivity through-1 out the company,” Mr Ham-1 mond says. | As announced, group profit! I fell 7 per cent to §3471 in the I ■year ended December 31. | after providing §390,000 1 I more for taxation at §2,929,000 and §BO.OOO more for depreciation at §1.298.000.1 The earning rate on shareholders’ funds dropped from 19.5 to 15.7 per cent. A significant rise in raw materials prices is to be expected this year as a result of international oil price increases, he says.

“Our existing policy to emphasise cost reduction, productivity improvements and cash conversion will continue to be important throughout 1979. without; however, detracting from ths progress that the company i| making to exploit diversifies, tion opportunities such as Dunlop Shelter Hong Kong and Beta Chemicals develop, intents which will bring beneIfit to the company and to i the economy.” A final dividend of 15 pei cent is recommended, making the total for the year 25 per cent (25c a share) against the 20 per cent which va» paid last year before tha bonus issue (one-for-three) in May. The dividend is covered 2.1 times by the profit.