Tenon posts $2M annual loss as sales slip, cost of sales rise
Aug. 19 (BusinessDesk) – Tenon Ltd., the NZX-listed company that sells wood mouldings in the U.S., reported a full-year loss as sales fell, costs rose and it recognised a tax expense.
The loss was US$2 million in the year ended June 30, from a profit of US$2 million a year earlier, the company said in a statement. Revenue fell to $326 million from $329 million. Operating earnings fell to $8 million from $12 million.
The earnings decline was “a reflection of the extremely difficult operating conditions,” the company said. As doubts about the U.S. economy grew, consumers opted to pay down debt rather than buy or renovate a house.
The shares rose 8.2% to 66 cents on the NZX and have fallen about 33% this year.