Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

CHH ends half year in strong financial position


Carter Holt Harvey ends half year in strong financial position

22 July 2004

Carter Holt Harvey was pleased to advise shareholders today that net earnings for the six months ended 30 June 2004 were $496 million, compared to $92 million for the same period last year. This result includes a gain of $440 million from the sale of the company’s Tissue business, recorded as a restructuring and non-recurring item, less unrelated restructuring costs of $39 million.

For the June quarter, consolidated net earnings were $458 million compared to $41 million for the June quarter last year. Operating EBIT (earnings before interest and tax) was $58 million, down $10 million on the same quarter last year. Excluding foreign exchange contract gains, the charge for the company’s share growth plan and the divestment of Tissue, underlying business performance improved by $30 million. Chief Executive Officer, Peter Springford, said it had been a significant six months for the company, with the successful sale of the tissue business and the purchase of Chinese specialty panel manufacturer PTP.

“We have talked about growing the business in our areas of core competency – pulp, paper, packaging and wood products, supported by forests. We are now seeing this strategy beginning to be executed in a disciplined way. This, however, will not distract us from focusing on the efficient operation of our existing businesses, and on the challenges we are working to overcome.”

Through its focus on total productivity the company is successfully making up for some of the effects of the strong New Zealand dollar. So far this year productivity improvements have offset 82% of the impact of foreign exchange rates on the company.

Other challenges for the company in the second quarter were weak log export markets, high international freight rates, and overcoming operational difficulties in its Australian wood products business. During the second quarter the company successfully installed a new A$15 million drymill at its Mount Gambier (South Australia) facility, and completed the one month shut of its Whakatane carton-board mill for installation of the $62 million wet end upgrade. In addition to this, the company is in the process of increasing production capacity at its Oberon (NSW) sawmill by 12%.

Peter Springford said although the company was in a strong financial position, it would continue to focus on improving efficiency and productivity across the business in order to increase returns to shareholders.

“We are very conscious that we need to maintain our focus on productivity. We are determined to achieve long term growth and sustainability of earnings in all key areas of our business and I believe we are making good progress towards delivering on this.” In addition to the previously announced return of capital of $480 million by way of a share cancellation, the company has declared an interim dividend of 3 cents per share for the year ending 31 December 2004, to be paid on Thursday 19 August 2004. -

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Commerce Commission: Mercury Cleared To Acquire Trustpower’s Retail Business

The Commerce Commission has granted clearance for Mercury NZ Limited to acquire Trustpower Limited’s retail business. Deputy Chair Sue Begg said the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market.... More>>



Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>


Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>