US winter, international events hit Tenon

Monday 28th March 2011

The outlook for wood products company Tenon has been dampened by severe winter weather in the US, unrest in the Middle East and North Africa, and the Japanese earthquake.

The company today said it estimated its reported ebitda (earnings before interest, tax, depreciation and amortisation) for the second half of its financial year - the six months to June 30 - would be up or down 15% on the US$4 million reported for the six months to December 2010.

That estimate was before any positive earnings impact that may result from the revaluation of its remaining forest assets, Tenon said. The company is listed on the NZX but has its headquarters in the US.

The forecast took into account the adverse impact severe winter storms in the US had on retail home store spending in January and February, and the negative impact international events were likely to have on market and operating conditions for the rest of the fiscal year, the company said.

NZPA

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