Newspaper Article 1994 – Eastern boasts buoyant results

Eastern boasts buoyant results

NZPA   Wellington

Eastern Equities says its expanded transport and contracting divisions have performed strongly since its February 28 interim balance date.

It also expected an improved horticulture result despite severe hailstorms affecting apple crops.

Managing director Murray Boyte, in the Hawke’s Bay company’s interim report, said trading had been buoyant for the transport operations since February.

As well as buoyant conditions for livestock, the rural division had benefited from a substantial increase in the use of fertiliser and from excellent growing conditions for produce such as grapes, squash and process crops, Mr Boyte said.

As for its horticulture operations (primarily apples), he said indicative apple harvest results showed that 98 per cent of the total production would be achieved, and the export yield was around 500,000 cartons – 17 per cent up on last year.

The March hailstorm, which affected the company’s orchards in south Hastings, caused an estimated loss of 49,000 export cartons.

Eastern Equities earlier reported a $231,000 net profit for the half-year to February 28, compared with a $322,000 loss for the corresponding period in 1993.

The horticulture division posted a $24-million operating loss, but was still expected to make a reasonable profit over the full year.

The interim report provided a segment breakdown which showed the increasing role of the transport division. This area of business made up 58 per cent of total assets at the end of February (up from 50.5 per cent the year before) and was responsible for 89 per cent of total sales (82 per cent).