November 13, 2008 / 12:34 PM / in 10 years

UPDATE 1-Sino-Forest Q3 profit beats market expectations

(In U.S. Dollars, unless noted)

* Q3 shr $0.49, before items, beats estimates by 5 cents

* Q3 revenue rose 83 pct to $295.5 million

Nov 13 (Reuters) - Sino-Forest Corp TRE.TO reported a better-than-expected quarterly profit, helped by a higher demand for domestic wood fibre, which helped offset slowing wood product exports and imports.

The Canadian forestry plantation company, which has major operations in China, said it earned $75.2 million, or 40 cents a share for the latest third quarter, compared with $63.4 million, or 35 cents a share.

Excluding an one-time impairment charge, the company earned 49 cents a share.

Quarterly plantation fibre revenue rose 76 percent to $245.2 million, and it comprised 83 percent of total revenue.

“Continuing demand for domestic wood fibre and steady rise in fibre prices reflect wood deficit remains in China,” Chief Executive Allen Chan said in a statement.

Sino-Forest said it remains conservative in predicting wood fibre consumption and log prices in the fourth quarter and going forward.

However, it expects a sustained demand for fibre, especially for domestic plantation logs.

The shares of the company closed at C$7.68 Wednesday on the Toronto Stock Exchange.

For the press release, please double click [ID:nCNW6mq88a]

For the alerts, please double click [ID:nWNAB2862]. (Reporting by Sakthi Prasad in Bangalore; Editing by Jarshad Kakkrakandy)

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