KRUPP’S IMMENSE PROFITS.

Manawatu Herald, Volume XXXIX, Issue 1686, 15 March 1917, Page 4

KRUPP’S IMMENSE PROFITS.

Krupp’s dividend has been maintained at. 12 per cent., notwithstanding the increase in capital, which has involved the distribution of £1,500,000, as compared with £1,050,000 in the year prior to the war. Bui it is obvious from close investigation and further inquiry, says Engineering, that the firm have made an even larger gross profit than the phenomenal amount realised in the immediately preceding year. The increase, indeed, is over £1,500,000 over the preceding year, which, again showed an enormous advance on that of pre-war times. This increase is not disclosed directly in the profit and loss account. Certain writings-off of an unusual nature have been made before the working profits were arrived at. Thus, for instance, the depreciation of works and plant is put down at £2,750,000, as agaa. l £1,900,000 for the preceding year. But in addition to this usual item there has been writtenoff, on war material, shops and plant, £1,500,000, making £4,250,000, as compared with slightly less than £1,900,000 for the previous year. There was a further sum written oft, on tools, means of transport, etc., which does not appear. Thus, although the surplus of working profits in the profit and loss account shows a decrease of

about £850,000, the result is really an increase of over £1,500,000, as already stated, on what was a record year in the Krupp concern. Even then the profit is given as £5,650,000, on a share capital of £12,500,000. In the balance-sheet, works, plant, etc—after the writ-ings-off have been deducted —are included at £12,080,000; tools and means of transport at £270,000; stocks, half-finished and finished goods, at £18,440.000 against £11,760,000 in 1914-15; patents 'and royalties,at two marks; fixed in-terest-stocks, free properly—at £5,900,000: fixed interest for war tax, 1914-15 and 1915-16, at £l,400,000. The share capital is now £12,500.000. ‘