Last year, MacMillan Bloedel made a
good 10% return on capital employed—
$100.9 million profit. There was strong

demand for our products, and Canada’s

devalued dollar helped. In the woods, the
mills, the offices, we kept a sharp eye on
costs, worked harder, improved produc-
tivity, made some tough decisions. It all

helped. We are a fi nancially solid .

company with our roots in a financially

Sound province.

~

a a 10% return riiay look pretty
| good. In fact, however, it’s
about average—what manufactur-

ing firms in Canada have been

making recently. In the years from
°75 to’77, MacMillan Bloedel aver-
aged only 2.8%.

_ The financial community: thinks our

return should be nearer 14%. Sur-
” veys indicate that the public thinks
we make around 18% profit, with
some suggesting as high as 30%.
10% on investment in 1978 works
out to be $100.9 million. $76.8
million of that has been ploughed
back into the business—to buy new,
more productive equipment, to re-
build mills to improve their produc-
tion, reduce pollution, hasten

reforestation, provide more secure |

jobs.
Healthy profit catches the eye of
the financial community. If we
need extra money for growth it
becomes easier to borrow at

- reasonable interest. As you know,

your banker.is kinder when your
credit is good.

Our improved profit i in 1978 meant
that, if you were a shareholder, you
received a bigger dividend for the

year. 24% ‘of the profi t was dis-

tributed among” our

17,000
shareholders.

This kind of profit tells the world

that MacMillan Bloedel is finan-
cially healthy. It is no wonder that
outside companies have sought to
take over this independent British
Columbia enterprise.

This is MacMillan Bloedel's annual
report. It explains how business was last
year. It covers our operations, products
and markets, gives financial figures for
the past several years, discusses future

plans. If you would like a copy, just

write us at MB REPORTS, 1075 West
Georgia Street, Vancouver,

VOE 3R9.-
MACMILLAN BLOEDEL

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Page 43, nee 1979 - ~ Sanday News

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