Tenon breaks even for half-year
Wood products manufacturer Tenon has reported a break-even net profit for the half year to December 31 on revenue of $197 million.
Tenon's revenue was up 23 per cent on the same period in 2012. It improved its interim result by recording a zero net profit compared with a $2m loss in the same period in 2012.
The company said its financial performance had gained momentum in line with the continuing recovery in the United States housing market.
Revenue growth came from increased sales to its "pro-dealer" customers who supply the new-home market with its timber products.
Tenon said pro-dealers now accounted for 45 per cent of its total North American revenues. About 90 per cent of its total revenue came from the US.
Retail and do-it-yourself sales also improved, growing by 10 per cent over the corresponding period in 2012.
Revenue in the period benefited from new and expanded product programmes, including softwood and hardwood boards, plank panelling and new hardwood mouldings, Tenon said.
"While there was some softening in conditions during the six months due to rising mortgage interest rates . . . we believe the overall housing market trend remains positive in terms of a continued recovery," the company said.
Tenon also made gains from restructuring in 2013.
Tenon confirmed its intention, signalled late last year, to start paying cash returns to shareholders in 2014 "assuming no unforseen events".
It said it did not know if it the cash return would be a dividend or share buyback.