Coillte has reported a slight increase in profits for 2002 – up 2% to €18.74m.
Solid performances were recorded in most areas with increased log sales, improved performance at OSB manufacturer SmartPly Europe and good results in land-based businesses.
Total log sales revenue increased by 9% in the group’s forestry business, Coillte Forest, resulting from a record level of sawlog volume of 1.78 million m3, up 6% on 2001, and increased volume of pulpwood sold of 0.93 million m3, up 8%.
This reflects a strong construction timber market and demand from SmartPly where pulpwood intake increased by 48%.
However, the benefit of higher volume sales was offset by depressed sawlog prices, a change in the product mix sold and increased costs.
Coillte chief executive Martin Lowery said future demand for logs is underpinned by significant recent investment in modern sawmilling and panel board processing capacity.
Coillte’s acquisition of 100% of SmartPly in 2002 moved the group into the international arena and secured an important outlet for Irish pulpwood.
SmartPly remained a loss-maker due to overcapacity in Europe – but losses were halved in 2002. Its market position in Ireland and the UK is strong and demand is growing in Europe at about 30% per year.
Performance varied in 2002 across Coillte Enterprises, which manages Coillte’s non-forestry businesses. Forestry Services and Nurseries were badly affected by government forestry cutbacks.
Looking to the future, Coillte chairman Brendan McKenna said the group is firmly focused on managing its forests efficiently, moving SmartPly into profit and adding value to the group’s land asset.
