Carter Holt Harvey posts $435m profit

Carter Holt Harvey today posted a net profit of $435 million for the year ended December, up from a $656m loss posted the previous year.

The company will pay an unimputed final dividend of 4 cents per share (cps).

Earnings per share (eps) for the period were 28.1 cps, up from a loss of 37.7 cps the year earlier.

Annual production volumes increased for pulp and paper, wood products and packaging.

Carter Holt's net sales for the year were down 9 per cent on 2003, mainly because of the sale of its tissue business in March.

Carter Holt said if the divestment was taken into account, net sales would have been up 3 per cent on the previous year.

Operating earnings before interest and tax (ebit) for the year was $259 million, down $56 million on 2003.

The sale of the tissue business was again cited as a reason for the drop, as were charges associated with the company's share growth plan and pension fund.

Falling pulp prices coupled with the high New Zealand dollar also hit the company's quarterly operating ebit, which fell $9 million or 13 per cent on the previous quarter to $62 million.

Lower sales volumes in its wood products segment also affected the operating ebit, but this was partly offset by record sales volumes in the pulp and paper segment.

During the year the company distributed $583 million to shareholders in the form of dividends and a share cancellation, and reduced net debt by $466 million.

The company said the major issues it faces this year were the domestic housing market and the currency.

In terms of currency, the New Zealand dollar ended December at US72c, US15c higher than the 20 year average of US57c.

With the housing market expected to soften in 2005, the company said it was reviewing its Tasmanian medium density fibreboard plant and was also taking steps to lower timber production at its plant in Victoria.

Shares in Carter Holt closed yesterday at $2.08, having ranged between $2.01 and $2.72 over the past 12 months.

- NZPA