MONEY MATTERS by Martin Younger
Page 70
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Dunlop profits slip—but some recovery expected
DROFITS of the Dunlop Co. in respect of the first six months
of the current year will be lower than those for the corresponding period a year ago. This unpleasant piece of news was given to shareholders at the annual meeting by the chairman, Sir Edward Beharrell.
Sir Edward pointed out that the Government's deflation package imposed last July, plus the serious recession in Germany, combined to make the results for the final three months of 1966 most disappointing. This disappointing state of affairs was carried forward into 1967, he added.
But a note of cheer: "We are expecting some recovery in the level of activity both at home and abroad", he stated, "with increased profitability in the second-half of the year. But with so many uncertain factors it is not possible for me to say at this stage how the results for the year as a whole will compare with those of 1966".
In a reference to the £.70 m. capital expenditure programme of the next three years, Sir Edward stated: "In this period we shall pay particular attention to further diversification of our range of activities, of which the extension of our palm oil interest is one example". Though the stagnation of the home economy has caused some deferring of expansion plans, "we have not made any significant reduction in our expenditure plans, but we can only continue a high rate of spending by the most careful stewardship of our resources and, above all, with adequate profitability".
For the Appleyard Group of companies, 1966 was the "most
• frustrating and out-of-balance year in its history", states the chairman, Mr. Ian Appleyard, in his latest annual review sent to shareholders. The July measures, added to the normal seasonal trend, caused sales of new vehicles during the final four months of last year to touch the lowest point ever in the company's history. This fall sharply contrasted with record sales during the first four months of the year.
Mr. Appleyard comments that the results of the current year depend on "imponderables". But he states that the investment in coachbuilding provides part of the "hard core" of the group's profits, being relatively unaffected by credit or hire-purchase restrictions.