Fletcher Challenge Forests turned last year’s NZ$302m first-half loss into a NZ$4m profit in the following six months.
The huge first-half loss was due to writeoffs in the failed Central North Island Forest Partnership. Operating earnings in the six months to December 31 rose 68% to NZ$47m on sales of NZ$359m, driven by its North American distribution business.
However, chief executive Terry McFadgen said the 6.6% return on assets from operating earnings fell short of the company’s 10% target.
The company is focusing on its processing, marketing and distribution businesses, as well as cutting costs.
