SAL Limited president John R. Berg said the company was unaffected by the economic turmoil following September 11 and that Bermuda's construction industry continues to thrive.

In his annual report to shareholders released yesterday, Mr. Berg said: "The turbulence experienced in some sectors of the country's economy during the past year has fortunately had little effect on the strength of construction related product sales.

"Construction and retail hardware markets have both continued the positive direction that was experienced during the first half of the year. This is demonstrated in our final sales value of $18.8 million, an increase on the previous year of over ten percent. It is distinctively satisfactory to point out, that the above trend was experienced in all departments throughout the company."

Mr. Berg said that the company achieved record-setting net income of $3.29 million this year, and said the net gain on the sale of land of $817,000 and the transfer of $400,000 from the general reserve were both included in the figure.

He also said that final operating income of $2.08 million, compared the previous year's $1.69 million showed a very satisfactory increase of approximately 23 percent.

Mr. Berg continued: "A further pleasing factor is that the balance sheet continues to move from strength to strength with improvements in the earnings per share increasing from $7.04 to $12.34 and net assets per share from $43.98 to $51.82. Similarly shareholders equity improved by a respectable 18 percent. This success is again reflected by the vastly improved cash position of $ 3.9 million."

He said the directors had decided to declare a record dividend of $4.50 per common share, which when taken together with the earlier dividend of $2, brought the annual total dividend to $6.50 per common share.

Mr. Berg also said that the temporary moratorium on capital purchases was postponed after giving consideration to the anticipated market forecast for the coming year.

Mr. Berg also highlighted several capital projects and said: "Given the strength of our cash position, significant capital has been allocated to both new and replacement plant and equipment. In particular, provision has been allowed to erect a new Auto Stak storage unit in the LBM Yard at our Southampton outlet.

Mr. Berg concluded: "Once again I express my thanks on behalf of the shareholders to our employees, as without their industrious effort this successful year would not have been achieved. The increased opportunities created during the year in the continued training and education of our staff are most certainly reflected in the standards of customer satisfaction that have been attained."