The next 24 months will see the demand and price of softwood structural timber increase as home construction develops in Australia, Auspine Ltd managing director Adrian de Bruin has claimed.
Mr de Bruin was speaking after Auspine announced its preliminary results for the year to June 30, which saw the company record post-tax profit of A$10.23m, a 28.2% decline in profit year-on-year.
However, Auspine, which has recently come under the control of Gunns Ltd, said that one-off losses, including plantation fires and a write-down on its Tasmanian assets, saw the company record an overall post-tax loss of A$4.3m.
Mr de Bruin highlighted softwood structural timber as the “standout performer” for the company, seeing gross profit increase 70% in the period to December 2006.
“Continuing strong underlying demand for housing is expected to underpin strong growth in new home construction in Australia,” said Mr de Bruin.
“As a consequence, softwood structural timber demand and pricing are expected to continue their growth for the remaineder of 2007 through to 2009.”
Gunns has taken effective control of Auspine after shareholders agreed to sell for A$6.15 per share, although Mr de Bruin and chairman Paul Teissiere have said they will not be selling their holding.
