Turnaround at Fletcher Canada

VANCOUVER - Pulp and paper producer Fletcher Challenge Canada, which has seen a change in its majority shareholder, scored a profitable fourth quarter on higher prices and a tax-related charge.

The company reported net earnings of $C57.4 million ($86.2 million) or 46Cc a share in the quarter to June 30.

That compares with a loss of of $C2.1 million in the same period last year.

Fletcher Canada said the latest quarter's net earnings included $C21 million of acquired tax losses.

"Operating earnings for the quarter of $C50.1 million are the highest since the last peak in late 1995," said chief operating officer Russell Horner. "Our focus on operational improvements, combined with the ongoing recovery in pulp and paper prices, bodes well for continued improvement in our financial performance."

Norske Skog took over as its majority owner last month, with a 50.8 per cent stake, when the Norwegian forester purchased Fletcher Paper.

- NZPA