Construction boom boosts SAL profits

A jump in sales helped construction supply company SAL record a 12 percent increase in operating profits for the 2002 financial year, the company said yesterday.

The company said the booming construction sector helped sales to rise more than seven percent to $20.2 million in spite of increased competition and rising costs.

But SAL president John (Chucky) Berg said added that the year's net income fell almost eight percent to $1.9 million from the $2.08 million recorded in 2001.

"This is a result that although satisfactory, is one that our future strategy aims to improve upon," Mr. Berg said.

"It should be noted that the above comparison is based upon pure operating results and therefore excludes last year's net gain on the sale of land and transfer from the general reserve. However, a similar comparison to fiscal 2001 shows that this year's net income is ahead by 12 percent.

Mr. Berg said net assets per share were valued at $50.19 and earnings per share were $7.13. "This year has brought to the fore the uncertain nature of the construction industry, as one of ease of entry and exit," Mr. Berg said. "Bearing this in mind, revised and improved credit control facilities have enabled your company to stay in a stable yet competitive position. "The introduction and stabilisation of new product ranges have also aided in improving our trading position, while the traditional product ranges in all divisions have fared exceptionally well."

SAL plans to purchase a new concrete block factory in Southampton in the coming financial year and is also planning to improve the control equipment in its Readymix concrete department. "As we become increasingly reliant on efficient and effective IT equipment and solutions, once again, a provision has been allocated to allow improvement in the current technology," he said.

Orbis asks US court to block Buffett's Clayton Homes deal

Bermuda-based mutual fund company Orbis Investment Management Ltd. this week asked a Delaware court to help it block Warren E. Buffett's $1.7 billion purchase of Clayton Homes Inc., a mobile-home maker in which Orbis has a 5 percent stake.

Orbis, which believes the price is too low, said it wants the Delaware Chancery Court to force Clayton to hold a shareholders' meeting so investors can vote on a proposal that mergers be approved by a majority of independent stockholders, Orbis said in a statement. The Clayton Family Foundation and the chairman, James Clayton, own 28 percent of the company's outstanding shares, according to Orbis, which has more than $2 billion under management, Bloomberg Business News reported.

Clayton's April agreement with Berkshire Hathaway Inc., Mr. Buffett's investment conglomerate, has drawn criticism from some shareholders concerned that Clayton may be selling the company at a discount to join Mr. Buffett's group of companies. Mr. Buffett said last month that he knew of "no self-interests" related to the deal.

Clayton Homes, based in Maryville, Tennessee has not announced when shareholders will vote on the proposed merger, Orbis said. It is not planning to hold a 2003 annual meeting because it will not be a publicly held company after the takeover by Berkshire Hathaway, according to a filing with the Securities and Exchange Commission.

Clayton Homes has asked the SEC to reject Orbis's request for a vote on independent shareholders because such proposals may only go before voters at an annual meeting, according to Orbis. Orbis plans to vote its shares against the takeover. Last month, the law firm of Green & Jigarjian LLP filed a suit on behalf of another shareholder seeking to stop the deal. Green & Jigarjian is also representing Orbis.