KAURI TIMBER COY

Hokitika Guardian, 31 December 1927, Page 4

KAURI TIMBER COY

Unfavourable business conditions, which resulted in a decrease of £20.000 is gross profits, were reported at the annual meeting of .shareholders of the Kauri Timber Company. Ltd. held in Melbourne, on December Bth. The chairman of directors, Air George Lush. in moving the adoption of the directrs’ report and balancesheet, said that during the last year there had been a continuance of unfavourable business conditions, and nearly every ]x>int of the company’s Operations had suffered from the general slackness of trade, both in New Zealand and Australia. Price cutting, due to an overstocked market, not only affected the values of timbers sold during the year, but also necessitated

writing down accumulated stocks below cost, which had had a very deflating effect on the year’s profits. Since the close of the year there had been a partial recovery in stock values owing to the reversion to former prices in lines that had been very drastically cut.

It was gratifying, said Air Lush, that the associate companies in New Zealand had contributed fairly to the year’s profits. The company was associated with the Vanikoro Kauri Timber Company, which was still in the developmental stage, and' was passing through the initial troubles incidental to undertakings of a pioneering character. Although the high quality of the timber had been established in the Australian markets, it still remained to he seen what quantity these markets could absorb at prices sufficient to provide a profit commensurate with the expenditure involved.