Gunns Ltd (GNS) is a Tasmanian-based hardwood forest products company, which supplies hardwood woodchip to Asian pulp mills. Its operations span sawn timber, local hardware merchandising forestry managed investment schemes.
GNS is listed as a materials sector company, and is one of the smaller companies (by market cap) in the Australian stock market.
Last week, GNS upgraded FY10 operating earnings guidance to $50 – $60 million, from the previous $30 – $40 million.
The earnings upgrade was largely due to increased revenues from the company’s plantation management services.
The share market welcomed the news, with GNS shares skyrocketing over 16% on the day of the announcement.
Despite this, GNS has been one of the shares to sell since late February when it reported a massive drop in 1H10 net profit.