Evergreen Announces Year End Result

Evergreen Announces Year End Result

Evergreen Forests Limited announced today an increased operating profit of $7.074 million (2002: $6.968 million) on turnover of $36.6 million (2002: $21.8 million). Chief Executive Mark Bogle said that the market downturn during the year reduced margins on the harvest volume of 295,450m3 (2002: 200,872m3).

As foreshadowed in the market release on 30th April this year, there has been a reduction in forest value to $141.9m as at 30th June 2003. The company also moved to valuation accounting for its forest assets with affect from 30 June 2003 and recognised deferred tax for the first time. Non-cash adjustments totalled $43.6 million giving rise to a net loss of $36.5 million for the 12 months ended 30th June 2003 (2002: net profit $6.7m). This includes a deferred tax provision of $15.1 million.

Mr Bogle said that the fall in forest value reflected the rapid appreciation of the NZ dollar, higher shipping rates and flat US log prices. He said that the company was currently harvesting from areas least affected by the export market downturn.

Evergreens net asset value on a fully diluted basis, before deferred tax, is $0.66 per share (2002: $0.79). After allowing for deferred tax the fully diluted NAV is $0.59 (2002: N/A).

Evergreens Chairman, Mr Peter Wilson, said that the company was pleased to announce two new director appointees: Mr. Robert A. Kriscunas and Mr. Paul L. Fowler. The new directors were nominated by the major shareholder in Evergreen, Ohio Public Employees Retirement System (OPERS), previously known as Xylem Investments.

The company also announced the cancellation of the 311,607 shares purchased under the share buyback scheme over the past year.

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