Carter Holt Harvey posts $73m half year profit

By NZPA

Wednesday 17th July 2002

Carter Holt Harvey said today that it had a June half-year net profit of $73 million against a $15 million loss in the year ago period.

New Zealand's largest wood products company said that operating earnings (earnings before interest and tax) increased by 74 percent to $143 million, compared to the $82 million made last year.

Carter Holt posted a first quarter net profit of $17 million.

June quarter net earnings were $56 million against a loss of $34 million in the same quarter last year.

The company declared a dividend of 3 cents per share.

Total operating revenue rose 7 percent to $2.03 billion.

Chief executive Chris Liddell said he was pleased to see the improvement in the company's results and attributed this equally to improving markets and a focus by management on several initiatives.

The dividend, which carries no tax credits, will be paid on August 19.

Earnings per share rose to 4.2 cents from a loss of 0.9 cents.

"We had sales of over $1 billion for the last quarter - the result of developing new businesses, markets, products and services.

"Our exports continue to grow with New Zealand export sales for the first half up over 19 percent on the same period last year."

He said the company had also maintained its focus on working capital, reducing it by $202 million over the last 12 months.

Capital expenditure as a percentage of depreciation and amortisation was at its lowest level since 1994. Selling and administration costs were decreasing as a percentage of sales.

The company was also benefiting from the hedging position it put in place against the rising New Zealand dollar.

"In addition, our balance sheet remains especially strong with net interest bearing debt $420 million less than a year ago and the ratio of debt to total assets is now the lowest it has been in over a decade."

"While the global outlook continues to be mixed, we expect over the remainder of the year to see a continuation of the solid operating performance experienced in the first half of 2002," Mr Liddell said.

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