New Zealand forest products company Carter Holt Harvey saw its timber profits fall by 24% during the second quarter after a slowdown in construction and mill breakdowns hit Australian sales.
The company’s wood product profits slipped to NZ$13m from NZ$17m a year earlier, while overall pre-tax earnings dropped 15% to NZ$58m.
House building has slowed in Australia, one of its core markets for timber sales. A breakdown at its Oberon fibreboard plant in Australia cost NZ$3m to repair and resulted in a 10-day shutdown, while commissioning a new drymill at Mt Gambier cost NZ$2m.
The company said a drop in log exports to South Korea and the sale of its tissue business also affected overall profits.
