The company released its annual report to the Australian Securities Exchange late yesterday.

The document said that Gunns' revenue was down from $862 million to $769 million.

The forest products revenue was listed as $597 million, a decrease of 5.8 per cent.

Earnings before interest and tax were $110 million, down almost 20 per cent.

The financial document said Gunns has $2.4 billion in assets, slightly lower than last year.

Net debt has fallen from about $1 billion to $662 million - principally as a result of Gunns' $316 million capital raising venture in September and the sale of a tranche of its timber in February for $173 million.

Its gearing was reduced from 52 per cent last year to 33 per cent.

Another capital raising venture is under way so it can buy Elders subsidiary ITC Timber.

It will pay a significantly reduced dividend to shareholders of 4 cents.

Chairman John Gay said that the instability of the global financial markets impacted on Gunns over the past 12 months, with less demand for wood fibre products from Japan and a 45 per cent reduction in earnings from the managed investment scheme business.

Mr Gay said Gunns would review its MIS structure for 2010 in light of the Federal Government's review of the sector.

Gunns said its non-operating items included $21.6 million on its controversial $2.2 billion pulp mill project.

Expenses included key contractual arrangements for equipment supply and construction, development of environmental management plans and progressing financial arrangements.

The report said detailed negotiations with its preferred joint venture partner commenced in June and continued, along with discussions with project finance banks.

It said it would finance the project with debt finance, export credit facilities and equipment finance.