NPANY mt.ETING

DUNLOP RUBBER

INCREASED TURNOVER

HE forty-third ordinary general meeting of Dunlop Ruboer Company, Mined, was held on June loth at the Piccadilly Hotel, London W., Sir George Beharrell, D.S.O. (the chairman), presiding.

The following are extracts from the statement of the chairman circu- ted with the report and accounts:—

The year 1941 saw the steadily increasing adaptation of British manu- cturing industry to meet the needs of the nation's war effort. Govern- ent regulations for the limitation of supplies reduced the volume of it business in certain Imes, but the demands for others were con,iderably ;paraded. The company's factories were satisfactorily occupied until the id of the year and total turnover increased, though profit margins ere lower. In spite of the closing of practically all the company's Euro- :an markets and steadily increasing difficulties in regard to export xnces and transport, our overseas trade resulted in a fair profit The ..erseas Dunlop factories outside enemy control showed satisfactory !sults, the Inwan and South African companies and the Dunlop Tyre td Ruboer Corporation, of America, having record sales and trading mats.

Unfortunately the extension of the wax in the Far East at the end of ie year changed the situation and the immediate outlook for your impany. 'Ibis new factor must be borne ir. mind in considering the ',counts and the directors' recommendations.

PROFIT AND DIVIDEND

The net profit for the year amounted to £3,186,000, compared with 3,002,000 for 1940. The provision tot taxation amounts to £4,085,000 the group as a whole. 1 he board feels that a policy of conserving and engthening the company's financial position is necessary, and has retore allocated to contingenc:es reserve the sum of £100,000 A divi- d on the ordinary stock of 8 per cent. is recommended.

It is difficult to comment usefully „ri tne outlook. but stockholders

• st have realised that recent events in the Far East have materially coed the company's position for the immediate future The Japanese ory, which has earned suostantial profits in the past, is, like the Dun- factories in France and Germany, lost to us for the duration of the , and our trading companies in China, Singapore and the Nether- ds East Indies have followed certain of our European companies into away. The rubber plantations, which Dunlop Plantations, Limited, later, Dunlop Malayan Estates, Limited, had brought to such a ch of efficiency, are in enemy hands. We cannot lock for any profit any of these properties till after the war. Nor do we know in

• t condition the assets will be when we recover them, nor what com- sation we may recover for any damage suffered.

The rubber manufacturing industry in this country is strictly con- ed, and the amount of business which we shall be :hie to do will d on the amount of rubber available. In regard to this I cannot any details. Every possible step is being taken by Great Britain her Allies to stimulate the production of reclaim, synthetic rubber rubber substitutes, and I ant confident that the Dunlop Company be allotted its fair share of whatever may be available.

EXTENDED USE OF RECLAIMED RUBBER

We ourselves are doing all we can to ease the position by the extended of reclaimed rubber, and we are benefiting by the foresight of your d in having established early last year additional plant for the re- g of tyres It seems, however, that we must be prepared for a tantial reduction of sales, both in the home and overseas markets, and overseas manufacturing companies will be similarly affected, some e, some less, than ourselves. This situation we are endeavouring to 'e by finding useful forms of manufacture to occupy the floor space is likely to be left empty and by economising expenditure in every ble way.

collaboration with the technical heads of the Industry we are work- in close contact with various departments of the Government, with relations are excellent. We can rely wholeheartedly on the loyalty good will of ow employees, who, you may be sure, appreciate the essive policy which the company has adopted with regard to • ions, Service allowances and other matters affecting their status, tv' and welfare. I would like here to offer them, on your behalf, cere expression of thanks for the way in which they stood up to the of 1941 and are facing the problems and difficulties of 1942. The Pally is well supported by liquid resources and reserves. Its organi- despite the shocks of the last few months and the absence of over of its employees on war service, is strong and efficient. Your d has every confidence that the company will weather the storm and e to uphold the great position which it has won for itself in the of the world.

report was adopted.