Selling your classic car? It's FREE to list your car on Honest John Classics | No thanks

British Motor earnings shock for market

13 April 1962

British Motor Corporation's interim statement, released well after market hours yesterday, is not likely to cheer the motor sector of the stock markets today. The interim is held at 7.5 per cent, but earnings for the first 32 weeks of the current period-it ends on July 31-suffered a severe setback compared with the same period last year: this in spite of a rise in output to 385,720 vehicles, against 352,135 in the corresponding period last time. This is again a story of lower profit margins.

A higher proportion of output was of the lower priced type and this together with increased sales in highly competitive markets and a number of strikes are to blame for the setback. As trading profits for the year ended July 1961, were nearly halved at £16,600,000, the prospects for this year are bleak. Indeed, the qualifying statement with the interim payment points to that.

" The directors consider that the general outlook coupled with purchase tax reduction and the availability of the dividend equalization reserve justifies the declaration of a maintained interim."

Reference to the dividend reserve suggests that the payment has not been earned. Last year's total of 20 per cent was, in fact, barely covered.

More news from the archive

Thu, 05 Apr 1962
Strike Costs B.M.C. £1M. A Day FROM OUR CORRESPONDENT BIRMINGHAM, APRIL 4 As a result of the three days old unofficial strike of 3,000...
Sat, 07 Apr 1962
Austin Strike Ends On Monday FROM OUR CORRESPONDENT BIRMINGHAM, APRIL 6 After meetings between managements and unions of the British...
Mon, 09 Apr 1962
RECALL OF 17,000 BY MORRIS MOTORS FROM OUR CORRESPONDENT OXFORD. APRIL 8 The 17,000 car workers at Morris Motors. Ltd., Cowley, who...
Wed, 11 Apr 1962
1,000 MOTOR WORKERS WALK OUT FROM OUR CORRESPONDENT LIVERPOOL, APRIL 10 A thousand workers at the Standard Triumph motor factory...
Wed, 11 Apr 1962
DAILY EXPRESS BMC BUILD NEW DESIGN HQ A new £550,000 building has been completed at Longbridge, Birmingham to house most of the...
Tue, 17 Apr 1962
Effect of Streamlining B.M.C. Design Forces MOTORS AND MOTORING From Our Motoring Correspondent News of the launching at Longbridge...
Fri, 27 Apr 1962
NEW ALBION DIESEL TRUCKS FROM OUR MOTORING CORRESPONDENT Albion Motors of Glasgow have introduced a new range of seven-ton payload...
Sat, 28 Apr 1962
B.M.C. Oxford Depot Approved FROM OUR CORRESPONDENT OXFORD, APRIL 27 The British Motor Corporation have been given permission by...
Wed, 02 May 1962
DAILY EXPRESS 500 CAR MEN IDLE Five hundred British Motor Corporation assembly workers at Morris Motors, Oxford, were sent home...
Thu, 03 May 1962
BACK TO NORMAL AT COWLEY WORKS Work was back to normal yesterday at the Morris Motor factory at Cowley. Oxford, after Tuesday's strike...
 

Compare classic car insurance quotes and buy online. A friendly service offering access to a range of policies and benefits.

Get a quote