BMC profits slump
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ANNOUNCING the full details of the proposed merger with
Jaguar, Sir George Harriman, chairman of BRITISH MOTOR CORPORATION, stated that because of a "steady risein operating costs and of disruption to production stemming largely from labour troubles, resulting in a short-fall of more than 100,000 vehicles, the pre-tax profits of BMC (including Pressed Steel) for the year that ended on July 30 last are expected to come out at about £20m. This would make them E9m. less than those returned for the 1964-5 trading period. But Sir George expects the dividend to be held at 20%.
So far as the Jaguar profits for the same accounting period are concerned, Sir William Lyons anticipates these will be roughly the same as those for 1964-5, i.e., £2.43m. Despite a substantial increase in production, profits were inhibited by a corresponding increase in costs. So far as BMC is concerned, Sir George stated that the order book is at a satisfactory level, but the latest deflation measures will "no doubt" take their toll. Nevertheless, taking all factors into account, he expects the demand for BMC products "will continue at a reasonable level". What of the merger? There seems little doubt that BMC shareholders come out of it with rather better terms than do those of Jaguar. All the same, little if any good would seem likely to stem from a refusal to accept the offer.
If BMC can quickly succeed in harnessing Jaguar's strong position in the large car market to its own formidable position in the smaller car market, keeping costs economic in the process, then in this age of the big unit all could turn out well for both sets of shareholders in the longer-term.
PARK YORKSHIRE HOLDINGS (formerly styled Park Motors 'Halifax)) announced that group profit for the year that ended on February 28 last amounted to E141,750. This compared with the forecast of approximately £140,000. The dividend is being maintained at 331%, as forecast COAST LINES have a large stake in the road haulage industry. In his latest annual review sent to shareholders the chairman— Sir Arnet Robinson—states that these road haulage companies had an "active year", and that the expansion continued.