Carter Holt Harvey Earnings up 17%

Carter Holt Harvey Announces Consolidated Net Earnings up 17% in difficult markets

Carter Holt Harvey announced today consolidated net earnings of $237 million an increase of 17% compared with $202 million last year. Net sales were a record $3,755 million, also up 17% on $3,210 million last year.

However, net earnings in the March quarter were $19 million compared with $57 million for the same quarter last year. Carter Holt Harvey CEO Chris Liddell said the poor outcome for the March quarter was a result of a very weak international trading environment.

"While market conditions in the first half of the fiscal year were strong, the second half was significantly weaker. In particular housing starts were down 35% and 13% respectively in Australia and New Zealand in the March quarter compared with thw same quarter last year. In addition the slowing economies in the United States and Asia led to lower demand for pulp and containerboard in our exports markets."

"We continue to focus on the factors that we can control, in particular those which will assist short term performance. We are also looking to strengthen the long term prospects of the company through our efforts in innovation and portfolio restructuring. However realistically the market conditions in the short term will remain very challenging"

ENDS

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