Evergreen Forests forced into the red

By PAM GRAHAM

Evergreen Forests yesterday announced a $36.48 million loss after a downward forest revaluation and one-time non-cash adjustments.

A cut in the value of the forest estate from $162 million to $142 million, a $15 million provision for deferred tax and a writedown on an investment in Nuhaka stripped the operating profit of $7.7 million to a loss by the bottom line.

The company made a $6.97 million operating and $6.75 million bottom line profit last year.

The company cut its harvest back about 15 per cent in the second half of the year because of poor prices, high freight rates, and the impact of the high New Zealand dollar, chief executive Mark Bogle said.

Though average prices for logs were the worst in 15 years, some segments of the market were holding up, and the company had flexibility to respond to change, he said.

Carter Holt Harvey, the largest forest owner, is reducing its harvest this year until conditions improve.

Fletcher Challenge Forests is selling its forests and will report its June 30 result by Friday.

Evergreen announced the appointment of two new directors to represent Ohio Public Employees Retirement System, whose investment in the company used to be managed by Xylem Investments.

They are Paul Fowler, a former Fletcher Forests chief executive, and Robert Kriscunas, a US-based lawyer.