DUNLOP CHAIRMAN'S WARNING
On a purely commercial view of the outlook, Sir George Beharrell, chairman of the Dunlop Rubber Company, finds much that is not displeasing. The better conditions in British trade which began in the third and fourth quarters of 1938 have, he announced at Tuesday's meeting, continued up to the present. Everything suggests that inventories have been brought down to reasonable levels, and that the underlying condition is much more healthy than it was at this time a year ago. In spite of all difficulties export business remains profitable, and its volume is being maintained. Subject to the continuance of the improved conditions in the U.S.A., the outlook for the American Dunlop Company is much more promising than it has been for many years. Dunlop Cotton Mills are producing rayon cord in considerable quantities, and this is being used in commercial vehicle tyres with ex- cellent results. He also expects that the new arrangement, whereby the assets of the Dunlop Plantations Company are being transferred to a new concern registered in Malaya, will react to the benefit Of the Dunlop Rubber Company..
But although he had all these favourable features to record, Sir George also found it necessary to sound a note of caution. The improvement in trade conditions as a whole is, he points out, not altogether a normal and healthy one, and is to some extent dependent on rearmament expenditure. The proportion of rearmament work included in the total turnover of the Dunlop Company is very small, and Sir George said that the closing of the rearmament programme would have a very slight direct effect. He was concerned about the possible effect on industry generally, which would react on the com- pany's business. For these reasons he announced that the board would continue to pursue a conservative policy. lie also made it clear that for the present at any rate they would discontinue the practice of issuing interim statements since
business is so susceptible to sudden changes. J. D. M.
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