Gunns Ltd recorded a marginal year-on-year net profit increase of A$800,000 in the 12 months to June 30.
The Australian forest products company recorded an after tax net profit of A$88m, with earnings before interest and tax up 6.8% to A$163.9m and the period January to June generating significantly more profit for the company than July to December 2006, recording net profit after tax of $67.5m and A$20.5m respectively.
Of the A$690m revenue recorded by Gunns, forest products accounted for A$431m, managed investments A$152.5m and the rest came from Gunns’s construction, merchandising and wine businesses.
John Gay, Gunns executive chairman, noted that the company’s forest products operations were likely to see growth in the next year, driven by the declining value of the Australian dollar against its American counterpart and tightening supply from competing export regions.
Mr Gay added that the company plans to use the acquisition of Auspine Ltd, of which Gunns currently owns more than 52%, as an additional revenue stream.
“It is our intention to initiate a strategic review with Auspine management to identify potential synergy benefits within the timber and forestry operations,” said Mr Gay.
