Aug 27, 2010. /Lesprom Network/. Integrated forestry company Gunns Limited reported a net profit after tax (NPAT) for the year ended 30 June 2010 of $28.5 million. This compares to NPAT for the 2009 year of $56.2 million. NPAT for the second half of $28.1 million is up from $0.4 million reported in the six months to December 2009 and up by $5.5 million on the prior year second half, company said in a statement received by Lesprom Network. Underlying earnings before interest and tax (EBIT) for the financial year of $51.4 million was in line with guidance announced on 11 May 2010 and compares to $107.4 million in the 2009 financial year. The difference between underlying EBIT and reported EBIT for the year of ($85.3 million) largely reflects the impact of impairment expenses recorded against assets being reviewed for sale ($41.6 million) and receivables from future earnings from MIS related assets ($88.4 million). Group revenue for the year was $704.0 million, down 8%. No final dividend was declared. Chief Executive Greg L’Estrange said “Trading conditions had been extremely difficult in the company’s key markets throughout the 2010 financial year and had caused the depressed earnings for the reported period. The collapse of the MIS sector also impacted profits in the period.” “While market conditions have remained challenging the company has moved forward aggressively in implementing its strategic review announced with the half year results” Mr L’Estrange said. “We have initiated a number of transactions, including the sale this week of the Tamar Ridge Wines business, the sale of native forest land and the sale of the Gunns retail hardware business, to focus the business on our core and profitable operations.” “This program will continue in the 2011 year with the objective of substantially reducing group debt and lifting earnings.” Forest products revenue for the year of $307 million compares to $394.6 million in the prior year, with underlying earnings of $44.7 million, down 51% on the prior year. This result is a direct reflection of the challenging trading conditions. Hardwood woodchip sales volume for the year of 2.2 million gmt is down 30% the prior year. Although volume declined in the second half to 870,000 gmt, margins improved in line with an improved sales mix. Timber products revenue increased 33% to $270.3 million with underlying earnings reported at $15.7 million. The revenue increase largely reflects the incorporation of the ITC hardwood business acquisition. Trading conditions gradually improved through the half with the business also benefiting from cost savings following the integration of the ITC hardwood business progressively from December 2009.