Gunns reports net loss of $4.6 million
Feb 15, 2011. Integrated forestry company Gunns Limited reported a net loss after tax of $4.6 million for the half year ended 31 December 2010. Underlying EBIT was $20.2 million, up $12.7 million on the previous corresponding period and in line with the company’s guidance.
Feb 15, 2011. /Lesprom Network/. Integrated forestry company Gunns Limited recorded a net loss after tax for the six months ended 31 December 2010 of $4.6 million. Earnings before interest and tax for the period were a loss of $5 million, as the company said in a press release received by Lesprom Network.
Underlying EBIT for the period increased to $20.2 million, up $12.7 million on the previous corresponding period and in line with market guidance Group revenue for the half was $363.4 million, up 11% on the prior period.
Forest Products revenue increased to $177.6 million, up 26%, with earnings increasing to $14.8 million after expensing non-operating costs arising from business restructuring of $6.0 million.
Timber Products revenue increased 22% to $155.2 million, with earnings decreasing to a loss of $9.1 million after expensing abnormal items relating to business restructuring and asset sales of $15.4 million.
Other segment revenue decreased 47% to $30.6 million with earnings down $5.9 million to a loss of $6.2 million after expensing abnormal costs relating to the sale of the merchandising, wine and construction businesses of $5.2 million.
Managing Director Greg L’Estrange said: “One-off items including impairments of non-continuing assets totalling $30.8 million and business restructuring costs of $9.5 million were necessary to position the company for the changing economic conditions of the forestry sector.”
"During the half we also increased our investment in softwood processing assets, taking over operation of the former FEA Bell Bay softwood sawmill. This mill, which is only three years’ old, provides scale and an efficient processing base for our Tasmanian softwood business and will contribute $85 million a year to revenue. The company recorded a gain on purchase of the mill of $18.8 million."
Gunns is one of the largest farmers of trees in Australia, currently growing the equivalent of 460 trees for every person in Tasmania on its plantation estate. Growing trees takes time. Gunns’ first plantation was planted in the early 1900s.