Queensland, Png Sales Boost Hastings To $18m

Sydney Morning Herald

Wednesday September 27, 1989

By EMILIYA MYCHASUK

Agriculture and earth moving equipment company Hastings Deering Corp Ltd has received a fillip from major mining equipment sales in Queensland and Papua New Guinea, to post a 58.7 per cent jump in net profit to $17.9 million

Those sales resulted in a significant increase of $109 million in core activities, to boost sales revenue for the year ended June by a strong 42 per cent to $561.9 million.

Managing director Mr Alan Jones said the outlook for the current year was encouraging. Sales growth would be maintained, and together with "firm control" of expenses and working capital, profitability would be enhanced in the 1990 year.

A final fully franked ordinary dividend of 5c a share was declared to take the annual payout to a steady 10c a share.

The company's interest bill rose to $24.78 million from $20.08 million previously, reflecting a higher level of activity in dealership operations, which flowed on to stretch working capital requirements.

Among other notable contributions to profit in the past year was the strong earnings of $3 million on turnover of $67 million from its recently acquired building service businesses, Thos Clark and Son Group, the company said.

A profit of $3.9 million also was made on the sale of the group's Hong Kong investment in Allied Overseas Investments Ltd.

© 1989 Sydney Morning Herald

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