Large loss reported by Forestry TasmaniaForestry Tasmania this week released its Stewardship Report for 2011/12, disclosing a AU$27.6 million operating loss for the year. Chairman Bob Annells said the financial result reflected the most difficult strategic and trading circumstances the business had encountered since corporatisation in 1994.
“These are bleak numbers. Revenues are down from AU$176 million in the previous year to AU$103 million, reflecting very significant falls in timber production and sales.” Mr Annells said the figures were sobering and reflected the magnitude of the task confronting Forestry Tasmania and the forest industry generally.
Managing Director Bob Gordon said hardwood pulp fell by one million tonnes compared to the previous year, as a result of the closure of export facilities and soft international demand. “The knock on effect was a fall in payments to contractors from AU$94.49 million in 2010/11 to $57.32 million in 2011/12.
“Management has already taken significant steps to align FT expenses with revenues. Staff numbers have been reduced from over 500 a few years ago to around 320 full time equivalents today. “To cope with the fall in revenue, FT sold its half share in the softwood joint venture for AU$76 million to reduce debt and provide working capital.
Forestry Tasmania’s Stewardship Report incorporates its annual financial report and sustainability report, and may be downloaded from the Publications section of www.forestrytas.com.au
Copyright 2004-2013 © Innovatek Ltd. All rights reserved.