First WRC profit

drop in 23 years was "not so bad"

Although difficulties with

and trading resulted in a profit

)p for the W. R. Carpenter oup for the year ended June the first downturn in 23

its, Carpenter’s new chairman

1 managing director, Mr. C.

Carpenter, believes that in the mmstances it is “not such a 1 result”.

'o offset the Islands position, e were increases in Islands chandising turnover, the Aus ian-based subsidiaries achieved an roved result overall, the company ived increased income from its istment portfolio, and its liquid fion is so strong that it will in ise the final dividend from 1\ cent, to 8J per cent., making a 1 of 16 per cent, for the year. he company called a special news ference in October—only its md general Press conference ever, a good piece of public relations k— to present a preliminary jment of profit. A final report be available early in November, he news conference also allowed Sydney Press to take a closer : at the new chairman, who «eded his brother, Mr. R. B. penter, who died on October 3. the conference it was also an nced that Mr. W. R. (Randolph) penter had been appointed jty managing director and general lager, and that Mr. S. S. Proud, Id also be general manager.

Details

lr, C. H. Carpenter, friendly and ing but admitting to some trepida at suddenly finding himself in the position and with a Press con nce on his hands too, asked ismen to “treat me kindly”. They ted him kindly, and in return Mr. penter gave frank replies to Jtions on the report, and made e predictions about the future of big firm’s activities. e said the percentage of the all profit which had come from ids activities was not yet known, would be available with the final •es.

The holding company’s pre liminary figures show a profit after taxation of $4,773,261, compared with $4,862,340 for 1965/66. The 16 per cent, dividend (15 per cent, last year) will absorb $2,400,000, or about 52 per cent, of the net profit for the year.

Among the reasons for the lower returns from the Islands were rising costs, lower prices, particularly from copra, and a fall in the copra tonnage. The rising costs were par ticularly in wages.

A drought and hurricanes in some of the major copra producing areas had reduced tonnages, and in Fiji there was a “mounting impact” on the community of the prolonged recession in world sugar prices.

Islands subsidiaries had produced a total of 10,917 tons of copra for the year, which was a decline of 652 tons. Cocoa produced was 1,092 tons, which was an increase of 64 tons. An increase in cocoa prices compensated for the weakness in copra prices, nevertheless there was a total fall of about $300,000 in revenue from Islands produce.

Copra prices had since become firmer, and cocoa was “fully firm”.

Merchandising

In Fiji, because of the adverse economic factors, there was an over all fall of about three per cent, in the annual rate of turnover of the merchandising companies, and a lower rate of profitability generally.

But in Papua-New Guinea mer chandising turnover had increased overall by about six per cent. Auto motive sales had made an increasingly significant contribution.

However, because of extensive remodelling of the group’s mer chandising structure in New Guinea during the year, with heavy costs, there had been reduced profit for the merchandising group. Trends since June suggested an improved merchandising return next year. The loss of the Lakemba had been re ported since the close of accounts, but she had been fully insured with Lloyds of London (see also p. 103).

Substantial development expendi ture had been made in the past year and the benefits from this were expected to be reflected progressively in earnings of future years. The first plucking of tea from the New Guinea Highlands estate would be made in the first half of 1968.

“As it would not be economic to create production facilities to handle the small amount of leaf that will be available initially, arrangements have been made at satisfactory prices

for the sale of the leaf to another local processor,” the preliminary re port added.

In answering questions at the news conference, Mr. C. H. Carpenter said that the position of sugar in Fiji was “still very bad”. And as a result of the poorer condition of Fiji generally there had been a drop of eight to 10 per cent, in the total tonnage of goods passing through Fiji ports, and this had affected the economy.

He hoped that tourism would play an increasing role in Fiji’s economy, and Carpenters would increase its investment in this field. Tourism, too, meant an increased turnover in the stores.

Tourism

“We have land and facilities for investment in tourism in Fiji,” said Mr. Carpenter. “We have some major sites.”

He agreed that the company was also interested in developing tourism in New Guinea, but was reluctant to give details. He said he could sum up the Carpenter interest in tourist possibilities everywhere by saying that “if there is anything in it for us we will be in the tourist industry.

If there is no money in it, we don’t want it!”

Mr. Carpenter said that he could see some further improvement com ing in copra prices, which were already much higher.

“Nobody knows why this should be, or how long they will stay good,” he added.

Mr. C. H. Carpenter.

Commercial trouble

at Mt. Hagen

Listeners to the abc were fascinated to hear the following Australia-wide radio broadcast on October 25: “At Mount Hagen in the Western Highlands of New Guinea, nine native employees at a big retail store Lave accepted the sack rather than work under certain Europeans who they allege spoke to them like dogs.

The entire native staff of Steamships Trading Company Limited, twenty two in all—went on strike yesterday, •claiming that they were habitually

sworn at and humiliated by a number of Europeans.

“The ABC’s Mount Hagen corres pondent says the striking employees had a meeting with company staff and an officer of the Administration’s Department of Labour, and were told their grievances would be attended to if they returned to work. How ever, most of the strikers refused to resume duty until the Europeans concerned were spoken to by the management.

“Thirteen of the native strikers were back at work today, but nine were dismissed.

“The ABC correspondent, herself an employee at the Steamships Trad

ing store at Mount Hagen—was a sacked this morning, allegedly having reported the strike to ABC news. The correspondent, M Janet Whish-Wilson, said the m ager had paid her off after tell her it was because of her ne report.

“Mrs. Whish-Wilson was an of! worker in the store. Her husband a surveyor with the Lands Dep< ment in Papua/New Guinea,”

A PIM New Guinea correspond afterwards reported that another the dismissed workers later retun to work, leaving eight out of a —plus the ABC’s corresponde PlM’s correspondent said there v no proof of the allegations agai the European staff and theref none was dismissed; the strikers w dismissed because they refused labour officer’s reasonable instruct to return to work pending an vestigation of their allegations.

In itself, the Mt. Hagen strike v of no national significance, but fact it got so much publicity cau: controversy in the territory. Mi employers asked: “Doesn’t this s of reporting stir up industrial trout and give others ideas? In the terests of sound labour relations th things shouldn’t be publicised”.

Many employees had differ ideas. And thus the Hagen strike whatever its cause, or its rights wrongs—revealed some of the tee ing troubles of industrial relations the emerging territory.

They'll run new

coconut project

Mr. Hans J. Rothkirch ■

arrive in Rabaul in Novem to manage a desiccated coconut p ject being established by the W.

Carpenter Group at Ulaveo, in Kokopo area of New Britain plantation property owned by a C penter subsidiary, Island Esfc Limited.

Mr. Rothkirch has spent his wc ing life in the Philippines. His f experience was on a sugar estate wl he first went as a young man fr Germany. Since then his experie has covered many agricultural asp< including plantation management i extensive manufacture of desicca coconut.

Assisting Mr. Rothkirch in management of the new desicca coconut project will be Mr. C. W, (Granger) Johnson, who has tal an active part in the executive m agement of the W. R. Carper Group’s interests in New Guinea a number of years.

More recently he has been

isible for the implementation of group’s successful executive cadet ling scheme.

n'rd consortium for

Caledonian nickel

FERNATIONAL Nickel Com >any of Canada has been granted ole in a third consortium to oit low-grade untapped nickel ore isits on New Caledonia, lis follows close on the heels of September 18 announcement that er Aluminum of New York, and territory’s sole nickel miner, jte Le Nickel of France, would i a second consortium to mine Caledonia’s precious nickel Oct., p. 123). inging in Kaiser and Inco fulfils ;ar-old promise by the French eminent to end the monopoly nickel deposits held by Le el for about a century, the third consortium, Inco will a 40 per cent, interest to explore develop areas outside Le Nickel’s concessions. Inco’s areas are m to contain huge amounts of ?rade nickel ore, but may have r deposits. le other 60 per cent, of the artium will be owned by French s, not yet identified, and Ugine mann, a big French aluminum, and chemical concern, which nickel for making stainless steel, is thought big Australian nickel opments may have influenced French Government to step up Station of New Caledonia’s ore.

■eamies"

ss better

SPITE directors’ predictions of "educed profits, Steamships Trad- Co. Ltd., New Guinea’s third st trader, has announced a small ase in profits for the year ended 30, 1967. The directors in aer did not indicate why profits better than anticipated, eamies” made $981,231 net , as compared with $960,705 ae previous year. Final dividend ye 2.5 cents per 50 cents share to December 15 to make final md distribution for the year 10 ent., or five cents a share, e dividend rate dropped sharply ist year’s 13.4 per cent, and is irst time since 1951 the com s dividend has been less than aer cent. ires bought under the recent 5 par issue will not be eligible ividend.

When the shares slipped from 90 cents to just above par after the directors’ predictions of reduced profits earlier this year ( PIM , June, p. 129) it was generally predicted that if the shares did not rise, then the company would be taken over.

The shares have certainly not risen much—they steadied at about 60 cents in late October—but take-over offers have not eventuated, either. As tU , . long as the company s shares remam at this low level it is vulnerable to take-over bids. Stock Exchange talk was that one big supermarket chain was still more than interested.

“Steamies” difficulty is that it has. big capital, collected through borrow ing, tied up in development projects which have not yet begun earning anything like the 20 per cent, the company consistently achieved in the past. If New Guinea’s political situa^ *ion rema i ns favourable to trading, . there is no reason why it f h ° uldn company s currently

% tZ,u 1 pay ‘ ng

oft m about six months and earning rates would be regained by June , 1969. J B y then, shareholders can probably expect their shares to have recovered to the Si mark.