4 Dec 2014

Tenon's earnings outlook 'looks bright'

1:59 pm on 4 December 2014

Tenon's chairman says the outlook for the wood building products company's earnings is looking bright because the United States housing market still has a long way to go to return to normal levels of activity.

Tenon's major market is in the US, where its products were carried in stores such as Home Depot and are also sold through trades outlets.

Its net profit of $US2 million for the year-ended June compared with the previous year's $US3 million loss.

Chairman Luke Moriarty told the annual shareholders' meeting the US was building only a million new houses are year currently, compared with 1.5 million normally.

"Quiet apart from any organic growth initiatives we put in place cyclical recovery alone should drive strong earnings growth in each of our underlying business streams."

"We're continuing along our path, driving market share growth, expanding our product range, improving our mix of manufactured product, extracting operational efficiencies, and increasing our exposure new the housing segment."

Mr Moriarty said the company may also benefit from the increased mergers and acquisition activity he expected during the housing market recovery.

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