gtp - could it be a takeover target?, page-4

I love the line below ; Gunns strategy is focused on growth via acquisitions -- -- --- -



Business Description
Gunns Limited (GNS) is a Tasmanian based, fully integrated hardwood forest products company and is Australias largest forestry company, exporting to over 25 different countries world-wide. Gunns main divisions are Timber, Plantation, Veneer, Construction, and Retail.

Company Strategy
The Company has recorded NPAT of $31.82m for the six months ended 31 December 2002, an increase of 77% on the pcp. A fully franked interim dividend of 17 cents per share up from 10 cents for the pcp will be paid out. The result reflected positive performances by all operating units but was driven by a strong increase in woodchip exports to Japanese pulp mills. Gunns strategy is focused on growth via acquisitions and the development of export markets for the companys products. The assets include over 125,000 acres of land with 49,000 acres of plantation forests and three mills. GNS is not just an exporter of hardwood woodchip, although those operations do underpin the group. Growth opportunities include veneer and rotary peeling based on the Tasmanian timber resource, which has a sustainable yield of some eight million tonnes per annum. On March 25, GNS announced the purchase of Tamar Ridge Wines for $14.8m. While the purchase does put GNS into the wine business we believe that it complements the existing Gunns Plantations woodlot sales program. Importantly the investment utilises surplus production assets that will ultimately increase both cash generation and operating earnings.
Company Details