SDI beating the recession

Southern Dental Industries Limited, a Melbourne-based manufacturer of dental amalgam and other dental restoratives, achieved a trading profit of $241,748 for the six months to December 31, 1990, a significant turnaround from the loss of $155,450 for the same period in 1989. An abnormal loss of $74,700 arising from the sale of surplus property resulted in a net profit of $167,048.

In announcing the results, SDI's recently appointed Chairman, Russell Smith, expressed the opinion that the improvement in the company's profitability can be attributed to a much sharper focus on the company's core business and acceptance of the fact that the tougher economic climate meant that productivity had to be improved.

"Whilst cost-cutting measures had caused some short-term pain, the company was now better placed to compete on world markets and the outlook was promising" said Smith. SDI exports to over 40 countries and currently hold nine per cent of the amalgam market in the USA. New technology and improved marketing arrangements should result in SDI increasing this percentage, according to Smith.

"No-one likes recessions, but they should encourage management to adopt a positive stance and address their business operations to identify avenues for improving productivity and finding new markets. In this respect SDI had received enthusiastic support from its employees and Austrade, which has been most helpful in reviewing opportunities for SDI in the USA and other markets", explained Smith.

Smith retired in 1990 from the position of Managing Director of First National Limited, the merchant banking arm of National Australia Bank.