Higher volumes and prices boost Coillte profits

The Irish state-owned forestry and timber corporation said in its annual report that profits after tax were €25.8m, up 69% on 2012, with turnover up 5% by €13.5 to €275m.

perating profits were up €6.3m to €41.3m on the back of increased sales volumes and higher panel board prices. Coillte invested more than €41m in capital expenditure, mostly on improving the forest estate.

Acting chief executive Gerry Britchfield said 2013 was a year of two halves. "The first half was extremely challenging, with the UK market exiting slowly from recession, however, there was a significant improvement in the second half.

"We are forecasting a significantly improved trading environment across all business areas for 2014. We have seen a good first half of the year to date and are looking forward to delivering on our targets for the full year."

The volume of logs sold to Irish sawmills increased 3% year on year while sales of panel products increased by 5%.

The higher log volume reflected increased demand for sawn timber in the UK market, while the increase in demand for panel products occurred mainly in Ireland and continental Europe.

Export sales accounted for 59% of turnover and 64% of this figure was sold into the UK.

In the annual report, Coillte also reiterated its strategy of creating a natural resources company. It welcomed the Irish government's decision to partially merge Coillte and Bord na Mona, the land and resources company, to focus on wind energy, biomass supply, shared services and green tourism.