Gunns posts net loss of $373 million in 2011

Australian integrated forestry company Gunns Limited has reported a net loss after tax of AUD355.5 million ($373.2 million) for the year ended 30 June 2011, compared to a net profit of AUD28.5 million ($30 million) for the same period of 2010. The company has reported revenues of AUD620.7 million ($651.6 million) for the financial year 2011, compared to AUD704.4 million ($739.5 million) for the same period of 2010.Underlying earnings (EBIT) for the year were in line with previous guidance at AUD41.6 million ($436.6 million), when compared to the underlying earnings (EBIT) in the previous financial year of AUD51.4 million ($53.9 million).

Earnings from plantation management for the year 2012 are projected at AUD7 million ($7.3 million). Timber markets are expected to remain difficult, while earnings are expected to improve progressively through 2012.The reinstatement of dividend payments will be dependant on both improvements in cash earnings and completion of targeted debt reductions.