PDL powers back into the black

By DITA DE BONI

Christchurch-based electrical and plastic products manufacturer PDL Holdings has swung back into the black for the first six months of its financial year.

The half-year yielded net profits of $3 million on sales of $179.2m compared with a net loss of $385,000 on turnover of $162 million in the first six months of last year.

Chief executive Mark Stewart said the company's industries division - manufacturing electrical accessories - had led the profit recovery recording a strong forward order position and staff growth of eight per cent.

PDL had large one-off costs in the 1998/99 financial year, including severance pay for 75 staff across the group, the transferal of an air circuit breaker manufacturing plant to Christchurch from Kuala Lumpur, and termination fees for four directors.

The company would consider reintroducing dividend payments which had been deferred during that restructuring, it said in a statement to the stock exchange.

All industry segments had improved sales and profits for the six months except electronics manufacturing including company's Australian and German subsidiaries, which fell slightly.

PDL Industries (Asia) made only nominal gains in the period but predicts a growing market share after recession caused retrenchment of competitors.

The company has since acquired Auckland-based design company Smart Wires for over $1 million to expand the company's high-tech product range in home automation systems. Mr Stewart also said PDL had formalised an arrangement with Canterbury University to take on around 50 seasonal students and more than 10 full-time graduates from engineering, business and organisational management faculties each year.

PDL shares were down 5c to 550c yesterday.