Tasmanian forest products company Gunns has reported a net loss of $904 million for the past financial year.

This compares to an almost $356 million loss for the previous 12 months.

The company blamed the costs associated with a major restructure and the state of the export woodchip market, which forced significant write-downs of forestry assets and its pulp mill project.

Gunns told the stock exchange that underlying earnings for the period were nearly $30 million, down from nearly $42 million in the previous 12 months.

It listed its net tangible assets at the end of the year at just over $24 million.

Gunns also warned that earnings were likely to be materially less for the current financial year.

The company has been in a trading halt for almost six months, which will continue until it can provide more detail about proposed capital raising.

Matthrew Torenius from Shadforth Financial Group says the company’s earnings have been hit hard by falling demand for its woodchips.

“What we’ve seen in a deterioration in the woodchip market, both the combination of the high Aussie dollar and also the supply of woodchips coming out of Australia and other countries have meant prices have really dived,” he said.