Listed wood processor Tenon has reported a loss of $US2 million in the six months to June, 67% higher than the same period a year earlier.
Revenue rose 7% to $174 million, helped in part by high-value lumber sales to both China and Europe.
The company says the US housing market recovery is now taking hold, which should be reflected in stronger earnings in the second half of the year.
Tenon is also focusing on expanding in Australia and China, to reduce its dependency on the United States.