Evergreen Lifts Half Year Profit To $3.5 Million

Forestry investment company Evergreen Forests Limited has reported a profit of $3.5 million, an increase of $1.4 million over the same period last year.

Evergreen's Chief Executive, Mr Mark Bogle said that the company's pure play structure had helped it to target markets that give the best returns, offsetting some of the price volatility in international markets.

He said that the past 12 months had been challenging for log exporters. "After a positive start, with international markets continuing to recover from the Asian slump, and exchange rates running in New Zealand's favour, prices stabilised mid year but have since softened. "

"We're expecting market conditions to remain flat over the 2001 calendar year which means company profitability would stabilise around present levels," says Mr Bogle.

"Longer term, the company is in a good position to maintain profit growth. Harvest levels have increased over the past year and will continue to grow as a larger proportion of Evergreen's forest holding reaches maturity."

"On the business development side, the company is planning for further growth with associated economies of scale," says Mr Bogle.

Evergreen is a public company listed on the New Zealand Stock Exchange and the Australian Stock Exchange. The company owns or has cutting rights over 21,000 stocked hectares (52,000 acres) planted in fast-growing radiata pine. Its forest properties are in Northland, South Auckland, the East Coast and the West Coast of the South Island.

For further information contact Mr Mark Bogle (09) 307 3240

Email: msb@evergreen.co.nz

The company's web site is located at: www.evergreen.co.nz For information on the New Zealand stockmarket and the company's share price on the NZSE, please go to: www.nzse.co.nz

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