Slowdown hits Coillte profits

Coillte chief executive David Gunning described the group’s 2008 figures as a “reasonable result” with the forest and panel products giant posting €9.2m in annual profits.

But, compared with the previous year, when the group recorded profits of €40.1m, Mr Gunning described the fall as “disappointing”.

The company blamed the slowdown in the construction sector in Ireland, the UK and Europe for the decline in profits, with the resultant lower sales of logs to sawmills, lower sales of OSB and MDF and lower prices across the group’s product range.

Around 35% of group sales were to the UK, a situation Mr Gunning said was made worse by the ongoing depreciation of sterling against the euro during the year. Turnover was down from €318m to €249m

He also said Coillte was looking for new markets for its products to buck the current economic position, developing new products and reducing costs.

Mr Gunning said the group was focused on its customers. “We have reduced our prices and are working closely with our customers to maintain relationships,” he said.

Going forward, he said the market in 2009 would be even more difficult than last year. “We will focus on developing new markets for products such as energy wood and developing a biomass energy business,” he added.