Carter Holt more optimistic

Press, 2 July 1983, Page 24

Carter Holt more optimistic

PA Auckland There are signs that the recession is losing severity in this country and that the recent resurgence within Australia will be sustained, say Messrs K. F. L. and R. H. A. Carter, joint managing directors of Carter Holt Holdings, Ltd, in the annual report. The company structure and diversity within selected resource areas, together with market access in the international scene, provide a basis for continued growth, they say. Significant growth in the domestic market is not readily foreseeable in the short or medium term. Carter Holt, as the directors suggested a year ago might be the case, has determined not to publish supplementary cost accounts applying to the year which ended on March 31. The chairman, Mr K. C. A. Carter, says that the decision was ‘made after study of all the implications. The presentation of supplementary current cost accounts was called for a year ago by the New Zealand Society of Accountants. As reported, Carter Holt increased group net earnings by $2,823,000, or 17.6 per cent, to a record $18,850,000 in its latest March year. The result was reached on sales 12.8 per cent higher at $259,117,000. Export sales, which at $108,733,000 passed the hun-

dred million for the first time, represented 42 per cent of sales. Messrs K. F. L. and R. H. A. Carter say that the difficult year forecast for 1983 became a way of life; downturns in the domestic and Australian markets were greater than expected. The review says that markets remained firm for the products of Carter Ji Kokusaku Pan Pacific, Ltd (Pan Pac) and Sealord Products, Ltd. Both companies operate as international joint ventures incorporating Japanese minority shareholdings. The performance of these two companies had a significant effect in offsetting the lacklustre result of domestic activity, they say. The Australian market is reported to be now stronger than in the second half of the 1983 year, but New Zealand conditions remain weak and uncertain. The accounts of the subsidiary, Canterbury Timber Products, Ltd, have been consolidated for a full year for the first time, and the 35 per cent interest in Henderson and Pollard, Ltd, has been equity-accounted for a full year, compared with 9.5 months the previous year. Of the ’ main trading activities, fish and fish products accounted for 17.8 per cent of sales and 35.4 per cent of exports, pulp 18.2 and 43.4 per cent, respectively, timber and timber products 36.1 and 21.2 per cent, respectively.

On the domestic market, builders’ supplies and retail merchandise were 20.4 per cent of sales and all other products 7.5 per cent. The consolidated balance sheet shows total shareholders' funds up from $116,138,000 to $142,629,060. During the year the company made a one-for-ten bonus issue, and a one-for-four rights issue of ordinary shares. Provision for deferred tax rose from $3,754,000 to $5,025,000. Term liabilities stood at $51,853,000 ($50,667,000 in 1982) and current liabilities $74,446,000 ($74,862,000). Fixed assets were $133,091,000 ($95,785,000), forest assets $19,978,000 ($12,736,000) capital works in progress $7,390,000 ($25,210,000), investments $19,188,000 ($18,237,000), and current assets $94,306,000 ($93,453,000). Dividends paid and provided require $6,096,000 ($5,160,000) which is covered 3.09 times (3.11) by net earnings. The earning rate on average shareholders’ funds was 17.2 per cent on the increased capital compared with 18.7 per cent in 1982.