KARACHI, March 25: Dawood Hercules Chemicals Limited — the fertilizer manufacturer — unveiled results for the year ended December 31, 2002, on Tuesday, showing improved profit on lower sales.

Pretax profit for the year stood at Rs1,131 million, 37.4 per cent higher than pretax profit amounting to Rs823 million the year ago. After tax profit was up 33 per cent to Rs793 million, from Rs595 million the previous year.

The meeting of the Board was held on Monday, but since it concluded after the trading hours at the stock exchanges, the company released the results on Tuesday. Directors skipped the final cash dividend but announced bonus shares one-for-two (50 per cent). Bonus issue last year was one-for-five (20 per cent). The total cash dividends for the year ended December 31, 2002 amounted to 95 per cent, compared with 100 per cent cash distributed the previous year.

At the stock market, the price of the share in Dawood Chemicals rose by Rs11.25 on Tuesday, to close at Rs161.25 with trading seen in 20,700 shares. The company has called the Annual General Meeting on April 30 at the registered office at Lahore.

The significant feature of the financial results for the year ended December 31, 2002 was the improved margins. Sales for the year slipped 1.4 per cent to Rs2,810 million, from a year ago sales at Rs2,851 million. But due to cost reduction, gross profit increased 35 per cent to Rs1,010 million, from Rs745 million with gross margin up to 35.9 per cent, from 26.1 per cent. Operating profit increased by 46 per cent to Rs886 million, from Rs605 million, with the operating margin higher at 31.45 per cent, from the previous year’s 21.2 per cent.

The Board announced on Tuesday that the share transfer books of the company would remain closed from April 21 to April 30 (both days inclusive). Bonus shares, if approved by the shareholders at the AGM would be issued to those shareholders whose names appear on the Register of Members on April 21, 2003, the company announced.