Underlying earnings were $20.2m, up $12.7m on the previous corresponding period and in line with the company’s guidance. The results differ dramatically to February last year when the company posted a 98.7 per cent drop in profits.

Greg L’Estrange, managing director of Gunns said one-off items totalling $30.8m and business restructuring costs of $9.5m were necessary to position the company for the changing economic conditions of the forestry sector.

He says, “In the past six months we have made significant progress implementing the strategic review we announced last February. This has been a critical stage for the company, which has necessitated us divesting non-core assets and operations, including the Tamar Ridge Wines business, walnut operations and arranging a progressive exit from the construction business.

“We have made appropriate impairment charges to the value of non-continuing assets, including the Scottsdale mill and our West Australian Jarrah operations. During the half we also increased our investment in softwood processing assets, taking over operation of the former FEA Bell Bay softwood sawmill.”

The company expects full year earnings to be consistent with its previous guidance, between $40m and $50m.

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