Leading Australian forest products firm Gunns Ltd, has recorded a A$5m net pre-tax loss for the six months ended 31 December 2010.
Forest products revenue increased to A$177.6m, up 26% on a year ago.
Timber products revenue increased 22% to A$155.2m, with earnings decreasing to a loss of A$9.1m after accounting for one-off items relating to business restructuring and asset sales of $15.4m Underlying earnings from sawn timber operations for the period of A$5.5m were impacted by a loss of margin in the hardwood business, with an increasing proportion of sales going in lower grade and lower priced products into export markets, as well as increasing operating costs.
