Crown Forest boost

Press, 3 August 1985, Page 21

Crown Forest boost

Crown Forest Industries, the Canadian subsidiary of Fletcher Challenge, Ltd, had second quarter net earnings after tax of sCan4.s million (SNZ6.B million), FCL reported yesterday. This compared with a loss of sCan4.l million (SNZ6.2 million) for the same quarter last year. Pre-tax earnings were ?Can7.9 million (SNZI2 million). The chairman, Sir Ronald Trotter, said the fact that Crown Forest was able to achieve its fourth successive profitable quarter with such a solid performance under the difficult market conditions that prevailed was most encouraging and

reinforces company confidence in the future. Crown’s chief executive, Mr L. C. Ryan, said its second quarter earnings represented its higher quarter after tax profit in four years. Second quarter sales reached a record sCan2lB million compared with sCanl92 million a year ago. Sales for the first half were ?Can4ll million, up from sCan33o million for the same period last year. Half-year earnings reached ?Can6.3 million compared with a loss of JCanlO.l million for the first half of 1984. Mr Ryan said the pulp and

paper division was a major contributor. This was owing to the absence of labour disruptions that impacted the industry a year ago. “Over-capacity for market pulp continued to affect prices, out widespread curtailments in the industry led to reductions in Norscan pulp inventories and by the end of the quarter there were signs of a price recovery. “Newsprint markets remained flat, although consumption was steady and customer inventories were tending to contract by late in the quarter. “Off-shore producers continued to find the United States market and the strong dollar attractive. This supply pressure is delaying an upward movement of newsprint prices.”