Aug 30, 2007. /Lesprom Network/. Timber products firm Auspine, which has recently been taken over by forestry firm Gunns, says softwood structural timber demand and pricing are expected to continue to grow until 2009. Auspine booked a net loss of $4.3 million for 2006-2007, compared to a net profit of $14.3 million in the prior year. Underlying profit after tax, excluding one-off items, was $10.23 million - down 28.2%. The result included a write-down of Tasmanian assets of $18.5 million and plantation fire losses of $1.2 million, which were included in the first half results announced in February. "Continuing strong underlying demand for housing is expected to underpin strong growth in new home construction in Australia," Auspine managing director Adrian de Bruin said. "As a consequence, softwood structural timber demand and pricing are expected to continue their growth for the remainder of 2007 through to 2009. Woodchip export volumes are expected to be maintained at similar levels as 2007, however, pricing should be firmer." Auspine said sales revenue for the year to June 30, 2007 had increased 4.6% to $234.2 million, but the company's results had been adversely impacted by timber discounting in the first half and lower standing timber valuation income. Trading profit from timber and woodchip was $17.2 million, of which $10.6 million came in the second half. "This was achieved by stronger timber pricing and a more consistent production performance from manufacturing units," Mr. de Bruin said. Structural softwood timber was a standout performer. Although volumes were down 10% in the second half compared to the first half, due to seasonal influences, gross profit was up 70% on the first half. Woodchip shipping schedules were maintained while prices also increased in the second half. Standing timber income was $9.1 million before interest and tax. Second half income was $800 000 as a result of minimal increases in log prices in the second half. Gunns said on August 29, 2007 that it currently holds 51% of Auspine. Auspine Limited is a vertically integrated forestry company involved in the growing and harvesting, manufacturing and sales of quality timber products in both domestic and export markets. Auspine is a public listed company on the Australian Stock Exchange with a market capitalisation in excess of $150 million. Total sales currently exceed $210 million per annum and Auspine directly employs 700 people. Auspine has state of the art manufacturing facilities in South Australia, Tasmania and Victoria.