Tenon overcomes challenges to post $17m profit

A rising local currency and higher log prices wiped $14 million off Tenon's first-half revenue, but the timber and mouldings exporter still managed to keep itself out of the red.

The company yesterday reported a net profit of $17 million for the six months to December, turning around a $26 million loss for the same time a year earlier.

The loss occurred after writing $38 million off the value of forests it has since sold.

No dividend was declared, but shareholders can expect to pocket $1.15 a share as part of the company's planned $321 million capital return this month.

Three out of every four shares will be cancelled and the payment is expected to be made about February 23.

Chief executive John Dell said the earnings had been achieved in a challenging environment and the adverse effect of foreign exchange rates had hit operating earnings by $14 million.

Looking ahead, Tenon said it expected operating profit for the full year to be in the range of $60 million to $64 million - before accounting for the sale of the Structural Consumer Solutions business.

Tenon said it would provide more earnings guidance after completion of the sale.

Shares in Tenon closed down 2c at $2.18 yesterday.

- NZPA, Bloomberg