Evergreen posts loss on reduced value of forests

12.00pm

Another pruning of the value of its forests saw Evergreen Forests Ltd today post a net loss after tax of $12.06 million for the year to June 30.

The result, a steep reduction on last year's $36.48 million loss, was achieved on flat revenue of $40.25 million, from $40.10 million last year.

The result included a $17.3 million net negative revaluation of the company's forests. Last year's loss was largely due to a negative revaluation of the company's forests.

Evergreen chairman Peter Wilson said today's result reflected the reality of reduced New Zealand dollar receipts for logs, with the export market showing poor returns, due in part to continuing high shipping costs and the strength of the local currency.

Mr Wilson also said there had been significant transactions of forest land over the last year, with the prospect of more to come as the industry's "ownership and cost base adjusted to changing market conditions".

Evergreen, 42 per cent owned by the Ohio Public Retirement System, also has West Coast American families on its register.

Evergreen was linked to the Kiwi Forest Group, which bought Fletcher Challenge Forests' estate and at one point Evergreen shares were offered for Fletcher's forests in an attempt to create a larger listed forest-owning company.

Evergreen shares were unchanged at 40c this morning.

- NZPA