Kauri loss reduced

Press, 12 April 1979, Page 22

Kauri loss reduced

Sawmiller and timber products manufacturer. Kauri Holdings. Ltd, reduced its loss to SAust34l,ooo in the February 28 half-year from 81.6 M in the previous corresponding period. The reduction was achieved in spite of a 57 per cent reduction in turnover to 56.5 M. The directors attributed the reduced loss to a rationalisation and reorganisation of the company's activities, in the past twelve months I They expected- the operating result for the second half of the year to partly eliminate the first-half loss, but the final result would be dependent on the extent to which the market improved.

In line with the further loss, the directors have not declared an interim dividend. The company chairman (Mr J. D. Balmford) said the industrial division at Port Adelaide continued to experience difficult trading in the latest half because of the continuing depression in the housing industry. Margins in sales from the division — involved in timber resawing and the manufacture of wall frames and roof trusses — continued to be lower than expected. “While the expected sec-

ond-half year activities provide some basis for cautious! optimism, particularly in the! latter months of the finan-i cial year, we can see noi strong upturn in the housing; section market this year,” , Mr Balmford said. The Tasmanian division,! which produces Tasmanian! hardwood from the Circular; Head area in Tasmania.! would benefit in the next; ‘few months from the in-j production of increased tar-; iffs on dressed and rough! I sawn timbers and from the' 'supply shortage and sharp .price increases in imported! j timbers. J The company’s interim! ijfigures revealed' an extra-! 'ordinary profit of $206,000: j($l.OM loss previously) from; [the sale of three retail outilets in South Australia last; December. ! Interest payments in the! 'latest half year fell $268,000 •to $162,000. while deprecia-i Ition charges fell $52,000 to! ’! $240,000.