Gunns maintains full year earnings guidance of underlying EBIT of AU$40M-$50M that will reflect asset value review from Green Triangle sale to complete in October
August 19, 2011
– FY 2011 Earnings
On the 15th February 2011 the Company provided full year earnings guidance of an underlying EBIT in the range of $40 million to $50 million. This guidance is maintained. We note a media report on 19 August 2011 referred incorrectly to reported earnings in this range. Reported earnings will reflect underlying EBIT and the accounting for a review of asset values including the effects of the previously announced Green Triangle sale transaction, which is being progressed for completion in October 2011, the valuation of the Tasmanian forest estate, which is under negotiation for incorporation in the pulp mill investment, and the valuation of Tasmanian native forest assets which are subject to the current industry restructure process.
FY 2011 Results Release
The 2011 results release has been rescheduled to Thursday 25 August 2011.
Suspension of Trading
The Company sought a suspension of shares from trading on 8 August 2011 based on concerns of trading occurring in an uninformed market based on media speculation around the Tasmanian Forestry Industry restructure process. These concerns remain.
The Company will be seeking specific clarification on material issues relevant to the process in the course of next week with the objective of enabling a lifting of the trading suspension following the release of 2011 results next week.