Agostini declares $9M in after tax profits, calls for greater incentives for manufacturers

Government must give greater incentives to the country’s manufacturing sector and put in place proper anti-dumping legislation. This is the message being telegraphed to the authorities by a large Port-of-Spain company in its Report to Shareholders in its annual report for 2003. “The government’s stated aim of Trinidad and Tobago becoming the manufacturing  centre of the Caribbean and the gateway to the Americas will remain just a dream, unless they can implement some measures or incentives for the manufacturing sector,” is how the report, signed by Chairman Raymond Bernard and Managing Director Geoffrey Agostini, put it. “Thus far we have only seen a negative measure in the removal of the export allowance in 2002. We look forward to positive measures being put in place, including the implementation of appropriate anti-dumping laws, or the FTAA will bring significant fallout in this sector over time,” added the report.

In spite of  these negatives, the report’s outlook forecasts that the country’s economy is poised for continued growth. “We will no doubt be able to take advantage and mirror this growth in our home market.” The company believes however, that the same confidence cannot be held for regional trade “as the stalled economies of the Caricom community and the unresolved problems in the Dominican Republic cannot leave us optimistic for any significant growth in our exports to these territories. We do however, expect growth in the export of our lighting fixtures to the United States.” The report described 2003 as a “tough year for business Trinidad and Tobago.” It attributed this situation to “political stagnation and haggling and the need for a third general election in as many years.” It also makes mention of the “serious escalation of crime and kidnappings,” which it claimed “severely affected morale throughout the year.”

In admitting that government had begun to take these problems seriously, the report however insists that “very much more needs to be done, or the tremendous benefits the country stands to gain from its oil and gas windfalls, will be compromised.” But even in the face of all these negatives, Agostini’s Limited was able to declare an after tax profit of $9.38 million, some 31 percent higher than the previous year. This occured, according to the report, in spite of the fact that local sales did not achieve the anticipated levels. On the export side the company’s sales grew, but the profits were negatively affected by the substantial devaluation of the Dominican Republic’s peso where the company had exchange rate exposure.

Of all the company’s subsidiaries, only one showed a loss. Agostini Industries Ltd, according to the report, was hard hit by the influx into the region of products from the USA, Mexico and the Far East. In addition stiff local competition has made the markets to which they sell overcrowded and have reduced prices to levels that result in slim margins. Agostini’s energy and oilfield supply company, Rosco Sales Ltd/Petroavance Trinidad, had a record year as it achieved its highest sales and profits to date. Agostini Marketing, Agostini Interiors, Agostini Pharmaceutical Ltd, and Agostini’s Fastening Systems all had good years, while Agos Lighting/Agos Manufacturing showed improvement due to its export thrust.