November 10, 2010 / 11:36 AM / 7 years ago

UPDATE 1-Sino Forest Q3 results top market estimates

* Q3 EPS $0.56 vs est $0.50

* Revenue up 63 pct

* Plans to expand geographic reach in China

Nov 10 (Reuters) - Canada’s Sino-Forest Corp TRE.TO, a commercial forest plantation operator, posted quarterly results that beat market estimates, helped by increased demand for wood fiber in China, and said it plans to expand its geographical reach in the Asian country.

“With the $1.4 billion cash on hand, we plan to expand our geographical reach to the central and western regions of China,” Chief Executive Allen Chan said in a statement.

“We intend to enter into agreements in the near future for the acquisition of an incremental 300,000 hectares of mature saleable trees to the existing base of our commercial plantations.”

The company, which owns and manages forest plantations in China, earned $118 million, or 47 cents a share, in the third quarter, up from $105.6 million, or 47 cents a share, last year.

Excluding a tax provision of $24.3 million, the company earned 56 cents a share in the July-September quarter.

Revenue rose 63 percent to $599.5 million.

Analysts on average were expecting the company to earn 50 cents a share on revenue of $443.2 million, according to Thomson Reuters I/B/E/S.

Sino Forest’s shares, which have gained 3 percent in value since the company bought a plantation in New Zealand earlier this month, closed at C$21.24 on Tuesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Anne Pallivathuckal)

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