State-owned Timberlands West Coast said yesterday that its net profit for the six months to September 30 fell to $1.51 million from $2.61 million.
The company is now dependent on the harvesting and sale of radiata pine, after the Government banned the logging of native timber.
Timberlands controversially tried to resist the
Government's decision last year to ban the logging of native forests.
Chairman Warren Young said the volumes and margins for both rimu and exotic sales were down on the equivalent period last year.
"Our projections for weakened demand and soft prices anticipated at the end of last year were in fact realised in the period under review," he said.
The company has reviewed and lowered its projected harvest of radiata pine this year.
Lower-volume cuts reflected weak demand and depressed prices for certain unpruned log grades, he said.
Mr Young said the retention of skilled workers had been a problem for the company.
Many of Timberlands' targets for the year may not be met because of the national shortage of skilled personnel.
During the half year, 42,700ha of predominantly beech forests were returned to the Crown as a result of the Government directive to cease indigenous forecast logging.
Nearly 88,000ha of mainly rimu forests remain under company management until next March 31.
Mr Young said discussions with Government ministers were continuing on access arrangements through the native forests to allow the company "the economic and practicable" harvesting of the exotic plantations owned and managed by Timberlands.
The Department of Conservation is mulling whether to maintain existing roads in the former Timberlands forests.
- NZPA
