Cut in profit forecast

Press, 25 January 1986, Page 21

Cut in profit forecast

Salmond Industries, Ltd, is forecasting record sales in its second half, but a reduced profit for the full year is inevitable, says the chairman, Mr G. W. Salmond, in a half-yearly report to shareholders. The development of the Chatham Islands Packing Company is going well, but the expansion of the former Fletcher fishing plant at Kaingaroa was set back by a storm that destroyed the wharf to the factory. However, crayfish landings are at last year’s levels and a contract has been let for a replacement wharf, which should be completed this summer, he said. The home and leisure division, made up of the brushware division and Hyams division, are showing good profit growth,

and should contribute a third of next year’s trading profit. The Investment in new technology for industrial brushware is paying off. Salmond has lower costs and better margins, and the exports to Australia and North America will continue to grow, Mr Salmond says. As reported, the group net profit fell 3.9 per cent to $942,000 in the six months to September 30, compared with the previous corresponding period. Sales increased 16 per cent to $26.1 million, including exports up 64 per cent to $4.9M. The profit was after providing $260,000 more for tax at $548,000. A steady interim dividend of 7c a share (7 per cent) has been declared, payable on February 3.