AUSTIN MOTOR CO. LTD.
Page 18
If you've noticed an error in this article please click here to report it so we can fix it.
A VERY GOOD YEAR
SUCCESS OF NEW "SEVEN" EXPORT TURNOVER EXCEEDS 145,000,000 MR. L. P. LORD'S STATEMENT
The thirty-seventh annual general meeting of The Austin Motor Company. Ltd., was held on December 6 at Longbridge Works. Birmingham, Ma. L. P. Loam the chairman, presiding. The following is the Chairman's statement:— A copy of the accounts for the year. including a consolidated balance-sheet and consolidated profit and loss account, was sent to you three weeks ago. together with the report of your directors. I think the accounts are self-explanatory and hope you will consider them satisfactory.
We have had a very good year and would like to express our thanks and good wishes to all our staffs and workpeople, suppliers and agents.
The directors' report covered the more important items in our operations and finances, hut there remain one or two matters to which I think you may wish me to draw your particular attention.
The vexed problem of replacing fixed assets, particularly plant and equipment, at current and continually rising prices, still remains. The strain. thrown on industry's capital resources by the ever-mounting pressure of inflation and the fantastically heavy taxation of companies' profits gives cause for grave concern.
Distribution of Profit Our profits this year have been high hut, as 1 have mentioned before, they have been earned mainly abroad; the Exchequer has benefited by the foreign currency we have brought to England and by its large share of the profit earned.
The following figures will be of interest: (1) We paid in wages and salaries £9.565,348 gross. ' . (2) We had to provide for United Kingdom taxation £3,738,033. • (3) We earned from our U.S.A. and' Canadian exports S21.671.597.
Production Production and profits so far in the current financial year have been satis factory. Our lead in the export of cars and commercial vehicles has been maintained. The new Austin "Seven," shown for the first time at Earls Court in October, has been wonderfully received both at home and overseas. Assembly should start in the spring. but this, of course, depends on steel supplies.
RearmamentProgramme—I men
honed last year that we were taking over the aeroplane factory at Cofton Hackett, adjoining the Longbridge works. During the last twelve months it has been almost completely filled with machinery, and production has started. For obvious reasons I cannot give you details of the orders we have in hand for the Government.
Extensions—The new final assembly building is complete and the equipment in operation. The whole scheme has proved satisfactory in every way. In another part of the works the installation of an entirely new body paint plant is almost finished, and from this also we expect to gain both in quantity and quality.
Export
We have had a successful year in world markets in spite of increasing difficulties. Our trade exceeded that of the previous year with a total turnover, including U.S.A. and Canada, of over £45.000,000. With Canadian demand most drastically reduced by the crippling credit restrictions imposed by the Dominion Government, and with our most flourishing Australian market imperilled by a shipping crisis, both of which troubles descended on us in full force in the early spring, it is remarkable that we have come through the year so well.
Turning to individual products, the A.70 Hereford and the A.40 sports model, which were introduced at the 1950 Motor Show in London, have proved most successful and the worldwide demand is beyond what we can at present hope to satisfy.. The model which has played such an important part in our export achievements is the A.40 saloon, which continues to maintain and consolidate its hold on world markets. Over 62,000 were exported in the year under review and for the nine weeks from April to June 98.5 per cent. of our A.40 Devon output went overseas.
The light commercial vehicles, that is those on the A.40 and the A.70 chassis, have proved very successful export products. Over 20,040 were shipped abroad—a 12 per cent. increase over last year. In addition we made record shipments of almost 20,000 heavy commercial vehicles and we ended the year, as we began, with a full order book. .
Projected Visit In my last Statement I announced that I hoped to go to Australia and New Zealand early this year. but the visit had to be postponed. However, these are such important markets that I am planning to fulfil my promise of last year and visit both territories early in 1952 to look over the assembly plants and selling organisations and to gather information on the spot regarding future demand_ . While, for the reasons already mentioned, results from Canada, and to a lesser degree the U.S.A., have this year proved most disappointing. 1 believe that both these dollar markets will before long revert, very largely, if not fully, to their previous level. We shall then be prepared to develop thent to the utmost and will have available newly acquired showrooms and offices in New York and showrooms and service centre in Toronto which will rank amongst the finest in each of these great commercial capitals.
It would be wrong of me to express easy confidence as to the future of car and commercial vehicle exports. It is already clear that this year will he one of growing difficulties, but we have a range of products of proved success and in the first 17 weeks of the current year the turnover of our exporting subsidiary, the Austin Motor Export Corporation, advanced by 18 per cent. over the previous year.
Austin-Nuffield Merger and New Austin Issue A notice of this merger was circulated to the shareholders of both companies, and you have also received particulars of the new capital issue of the Austin Motor Company. In the notice it was stated that stock and shareholders of each company would receive a detailed communication and an offer to exchange their Ordinary stock or shares as soon as all the necessary formalities have been completed. I am afraid that at thiS early date I have nothing further to report. I am sure you Will all agree that the unified control will be beneficial and to the advantage of both companies.
Conclusion—With regard to the next twelve months, we are hoping that our• immense programme of production for rearmament will be in addition to our normal output of cars and commercial vehicles for home and export, but if a world upheaval occurs, or the shortage of raw materials becomes more acute, domestic and export production will, of course, be affected.
The report and accounts were adopted.