Earnings sharply down for York Timbers

York Timbers says its profits are sharply down this year although its sawmill are still producing lumber for the South African market. Image: York Sawmill

The company‚ which converts logs into a wide range of sawn lumber products‚ said that it had increased its revenue by 17% to R1.32bn as a result of the acquisition of two wholesale businesses.

But operating profit decreased by 27.6%‚ largely as a result of the processing plants not being able to recover their cost increases from the market. Headline earnings per share in the year to June fell from 33c last year to just 14c.

"We increased investment in our processing plants to further enhance efficiencies and expect consequent benefits in the next financial year‚" the company said in a statement.

No divided was declared.

York said lumber outlook remained stable‚ with volumes sold increasing and prices slowly moving upwards.

"Plywood demand remains strong‚ with prices at profitable levels. In line with our growth strategy‚ York will invest in plant efficiencies and value-adding opportunities in order to improve operating margins," it said.

Source: BDPro via I-Net Bridge