Tropical timber specialist Precious Woods says it is “bitterly disappointed” at recording an operating loss of US$8.9m for the first half of 2010.
The company, which started a group reorganisation in 2009 to increase operating profitability, said political restrictions such as Gabon’s log export ban and delayed harvest permits in Brazil had negatively impacted the result.
The Gabon log ban affected results by US$2.3m, while an unexpected loss on stored wood in Brazil accounted for US$900,000 caused by an inventory error.
“The board of directors and the group management find the unsatisfactory performance at mid-2010 bitterly disappointing given that intensive work is being put into a profound turnaround,” the directors said.
