Fletcher Canada profit up

WELLINGTON - Fletcher Challenge Canada made net earnings of $23.2 million for the three months ended March 31, up from $11.5 million for the year-ago period.

The company, 50.8 per cent owned by Fletcher Challenge - although that will change when the sale of Fletcher Paper to Norske Skog goes through - said earnings were up from the previous quarter's $17.6m.

Fletcher Canada chairman Alexander Toeld told the Stock Exchange the improvement in earnings represented the company's best quarter in more than four years.

He said the earnings reflected higher prices for paper.

A $US50 per tonne newsprint price increase had taken effect on April 1.

Company president Russ Horner said pulp markets were expected to tighten further in the near term as producers underwent maintenance shutdowns during a period of strong seasonal demand.-NZPA