Published: 11 August 2005
Tenon Ltd, the former Fletcher Challenge Forests, has turned round from a $42 million net loss in 2004 to make $29 million net profit after tax in the June 2005 year. Discontinued activities provided $64 million of the loss last year and $11 million of the profit this year.
Operating earnings from continuing activities fell from $37 million to $33 million. However, excluding unusuals & forex gains & losses, operating earnings from continuing activities rose by $4 million to $35 million. The company said underlying earnings growth was achieved in a challenging business environment and after an additional $5 million allocation of corporate support costs previously borne by the discontinued activities.
Tenon will state its results in $US from the new financial year because that’s where most of its business is.
Tenon sold its forest assets for $725 million in 2004, allowing the group to focus on its investment in higher-margin wood processing, marketing & distribution activities and return surplus capital to shareholders.
In April it sold its Structural Consumer Solutions business to Carter Holt Harvey Ltd for $171 million, including working capital movements.
The company returned $349 million of capital to shareholders in 2004 and another $321 million early this year out of its forest sales process.