Toronto-based Sino-Forest Corp reported year-on-year increases in earnings before interest, taxes, depreciation and amortisation (EBITDA) and net income of nearly 50% during the third quarter.
EBITDA rose from US$87.9m to US$130.5m and net income rose to US$67m from US$45.1m in 2006. Revenue also increased by 7.1% to US$161.5m during the quarter, with gross profit up 38.7% to US$70.5m.
Sino-Forest, which manages more than 350,000ha of forest plantations in China, said that a US$44m increase in standing timber sales had driven the results and that it planned to pursue further growth.
“We remain focused on creating shareholder value at both our upstream plantation operations and our downstream manufacturing facilities,” said chairman and chief executive officer Allen Chan.
“In Hunan and Yunnan, we continue to make progress on ramping up our integrated operation by taking inventory of the trees and investing in infrastructure and qualified people.”
Sales of Sino-Forest’s manufactured products increased 71% during the quarter to US$7.7m. The company cited a growth in sales of engineered wood flooring as a reason for the increase.
