Poor markets have caused profits to shrink at southern hemisphere foresty giant Carter Holt Harvey (CHH) during the first quarter of the year.

The company made net profits of NZ$17m in the three months to the end of March, down from NZ$19m in the previous quarter. Earnings before interest and tax at CHH’s wood division outperformed the company overall and rose to NZ$10m on sales up 25% to NZ$340m.

Chief executive Chris Liddell said the results were ‘satisfactory given market conditions and reflected continuing improvements in most of our businesses’.