Sino-Forest Corporation
Sino-Forest Corporation is a leading commercial forest plantation operator in China. Its principal businesses include the ownership and management of forest plantation trees, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products.
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Sino-Forest grows fourth quarter profit by 52%
Sino-Forest Corporation (TSE:TRE) reported Tuesday that fourth quarter profits soared 52% as revenues jumped on increased demand.
For the three months ending December 31, 2010, the forest plantation owner that operates in China posted net income of $170.9 million, or $0.65 per diluted share, compared to $112.7 million, or $0.49 per diluted share, in the year-ago period.
Revenues rose by 63% to $767.3 million from $469.6 million a year earlier, mainly due to an increase in sales from the company's wood fibre operations.
"Infrastructure and housing construction activities and the rapid pace of urbanization in China continued to drive demand for our wood fibre, especially in inland provinces where the majority of our operations are based," said chairman and CEO Allen Chan.
Revenue from sales of plantation fibre in the fourth quarter increased 57% to $581.4 million, primarily a result of an 11% increase in the average selling price and a 41% increase in volume of fibre sold, the company said.
Meanwhile, sales from trading of imported and domestic logs and other wood products soared to $163.1 million, compared to $83.0 million in the fourth quarter of 2009.
"With $1.2 billion of cash on hand, we plan to continue expanding our geographical reach into new provinces (central and western regions of China), where we will add 300,000 hectares of mature saleable trees to our portfolio of commercial plantations," added Chan.
In fact, the company said that it signed an agreement this week to acquire 150,000 hectares of harvestable commercial plantations, details of which will be released shortly.
For the full year 2010, net income increased to 38% year-over-year to $395.4 million, or $1.60 per diluted share, on revenues of $1.9 billion.
At year-end, the company had 788,700 hectares of total area of plantations under management in China, up 54% from 2009.
Other Sino-Forest Corporation news
- Sino-Forest shares surge 40% after US-based fund takes 11.5% stake
2011-07-04 - Sino-Forest responds to Globe and Mail article, calling it "incorrect"
2011-06-20 - Sino-Forest ups holding in Omnicorp to majority stake
2010-06-23 - Sino-Forest acquires engineered wood production and research business in China
2010-01-12 - Toronto listed China forestry play set to benefit from Jiangxi deals
2009-06-19
