Evergreen posts smaller loss

Evergreen - the listed forestry company in the process of deciding whether to sell its trees - posted a loss for the half-year to December 31.

But the result was an improvement on the loss for the same period a year earlier.

Evergreen had an $8.34 million loss for the half- year, compared with a loss of $13.15 million for the previous corresponding period.

Earnings were affected by a $14.6 million writedown in the value of its forests in December.

Last year the company said it would consider selling non-core forest assets such as young forests and forests suitable for other land uses in an effort to offset the strong dollar and high shipping costs.

Chairman Peter Wilson said those factors had continued to hurt the bottom line.

He said the review of asset sale and recapitalisation options being conducted by Forsyth Barr was progressing well. He did not say when it would be complete.

Operating revenue fell to $14.9 million for the six months, from $19.02 million for the same period last year.

Losses per share were 5.4c, compared with 8.6c for the December 2003 half-year.

Shares were unchanged yesterday, closing at 32c.