Tenon Issues Earnings Update
3 February 2017
Today Tenon announced earnings guidance for its Clearwood (only) business for
the fiscal year ended June ''17. The previous estimate for Clearwood of
US$11.8 million EBITDA in Grant Samuel''s Report issued on 25 October ''16 has
been revised down to US$10.5 million (excluding FX gains/losses and Tenon
corporate costs). This estimate, which now reflects the 6 months management
results recorded to 31 December, also updates for changes in operational
factors (e.g. product mix and input costs), and assumes average FX rates for
the fiscal year of Euro:NZD 0.66 and USD:NZD 0.71 (Euro:NZD 0.64 and USD:NZD
0.71 per Grant Samuel''s Report October''16). Tenon has no outstanding FX
hedging contracts in place.
This update is consistent with Tenon''s previous announcements made on 23
December 2016 and 6 January 2017 which stated an "updated [Grant Samuel]
report would take into account, amongst other things, average adverse
currency movements..."
The Company said that it would announce its Half Year result later in
February, which, in addition to Clearwood''s earnings, will include the
earnings of its Australian activities (closed in the period) and its North
American operations (sold in the period, and treated as discontinued), as
well as FX gains/losses and other income and expenses arising in the period
(for example, Tenon corporate costs) not included in Clearwood''s earnings.
Ends
FORWARD-LOOKING STATEMENTS
There are forward-looking statements included in this document. As
forward-looking statements are predictive in nature, they are subject to a
number of risks and uncertainties relating to Tenon, its operations, the
markets in which it competes and other factors (some of which are beyond the
control of Tenon). As a result, actual results and conditions may differ
materially from those expressed or implied by such statements. In
particular, Tenon''s operations and results are significantly influenced by
the level of activity in the various sectors of the economies in which it
competes, particularly in New Zealand, Europe, and North America.
Fluctuations in industrial output, commercial and residential construction
activity, capital availability, housing turnover and pricing, levels of
repairs, remodelling and additions to existing homes, new housing starts,
relative exchange rates, interest rates and profitability of customers, can
each have a substantial impact on Tenon''s results of operations and financial
condition. Other risks include competitor product development, product demand
and pricing, input costs and customer concentration risk.
End CA:00296354 For:TEN Type:GENERAL Time:2017-02-03 14:29:31