Tenon, the unprofitable wood mouldings company, said operating earnings should rise this year amid signs of recovery in the US housing market.
Chairman Luke Moriarty held off on giving specific guidance when he addressed shareholders at their annual meeting in Wellington yesterday, warning of "uncontrollables" that include a strengthening New
Zealand dollar and uncertainty over fiscal cliff negotiations in Washington.
"Those issues aside, we do see improved performance from the company moving forward now, as broader market conditions continue to recover," he said.
Tenon gets about 90 per cent of its revenue in the US, so its fortunes have been closely aligned with its housing market.
In the first five months of the New Year, Tenon's sales in the new home construction market rose more than 20 per cent on the same period a year earlier. That market segment accounts for about 30 per cent of sales, while the retail market - typically home renovators - makes up 70 per cent.
