Page 17

Forest NSW Annual Report 2012

751 734 800 670 662 700 625 600 500 BIOLOGICAL ASSETS 400 ($M) $734 million 100300200 0 2007–08 2008–09 2009–10 2010–11 2011–12 REVENUE PER EMPLOYEE Revenue per employee (full time equivalents) ($’000)50040030004312011–123972010–113932009–103222008–093142007–08 $431 000 100200 Key ratios Business segments supply on the north coast.include the softening pulp market and wood Earnings before interest and tax (EBIT) to sales Native Forest Operations was able to produce Planted Forest Operations had a challenging percentage was 7.3 per cent, which was lower more sawlogs than last year due to slightly year with the housing market not showing than last year and budget, attributable mainly improved weather conditions this year, to the revenue shortfall affecting the operating however production levels were lower than any signs of improvement. Sawlog and pulp profit. This also affected the return on assets budget by 130 000 m3. Native forests had volumes were down on last year. All plantation ratio. Forests NSW maintained a strong balance significant expenses in the year relating to reestablishment and roading costs are expensed sheet with the value of its key resources – severance and legal costs, and the business as they occur, only major construction costs and biological assets – increasing to $734 million. now also includes the cost of hardwood equipment purchases are capitalised. Earnings Cash flows and working capital management plantations. Excluding, these items, the before interest, taxes and overheads for the year were also carefully controlled and this was underlying business improved in profitability of $49 million or 25per cent of sales was a strong reflected in the satisfactory liquidity ratios. by $7 million over last year. The objective for performance for the business. Challenges ahead the native forests business is to return at least include pressure on log pricing and further Productivity ratios also indicated that the a breakeven EBIT. Challenges for the business deterioration of the housing market. business is driving efficiencies with revenue per employee improving over the years to Segment information $431 000 revenue earned per full time Year ended 30 June 2010–11 2011–12 equivalent employee. Native Forest Operations Revenue $m 95 112 Forests NSW did not increase its debt level in Volume2 the 2011–12 year and can meet its interest 3 518 612 ‘000 m - Sawlog obligations with the interest cover being - Pulp '000 tonnes 589 503 2.5 times. The increase in the debt ratio is 1 and before overheads $m (1) (3)EBIT mainly due to increase in superannuation Operating profit after overheads before tax1 $m (13) (16) liabilities resulting from actuarial changes. Planted Forest Operations Significant items recognised in the income Revenue $m 228 198 statement were a $76 million expense resulting Volume2 from increases in superannuation obligations - Sawlog ‘000 m3 2128 1933 and leave liabilities due to actuarial assessment - Pulp '000 tonnes 1580 1486 and change in discount rate, a $16 million EBIT1 before overheads $m 65 49 expense from reduction in the biological asset Operating profit after overheads before tax1 $m 45 32 value and a $6 million expense related to 1 Excludes significant items such as revaluation impact, impairments and impact on superannuation funds, before taxes. revaluation impact on land and buildings. 2 See indicator 22 for volumes by product type rather than by operating branch as reported here. Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance 17


Forest NSW Annual Report 2012
To see the actual publication please follow the link above