Irish state forester Coillte boosted its profits significantly in 2010 to €32.1m (2009: €4.2m), thanks to strong demand and firm log prices.
Turnover was up 21% to €250.4m, with Coillte citing a good performance in log sales to sawmills and higher priced for panel products, particularly its SmartPly OSB.
“We have worked closely with our sawmill customers to increase the level of exports of Irish timber, in particular to the UK,” said Coillte. CEO David Gunning.
“Construction sawn-wood exports from Irish sawmills have risen from approx 5,000m³ at the start of 2009, to an estimated 200,000m³-plus for 2010 and Irish sawmills now have a 7% share of the UK market.”
Sales at Coillte Panel Products, which makes SmartPly OSB and Medite MDF, rose by 8%. It increased prices across some of its product range and exported significant volumes of material.
Planning permission has been secured to facilitate reinvestment in the SmartPly panel mill in Waterford Port and a new added-value business model has been developed to increase the product range to meet demanding customer requirements.
For Medite, a number of investments were completed that improved product quality and lowered input costs.
Roundwood sales were strong in the first half of 2010 but demand declined as the year progressed, with the result that overall volumes of sawlog and pulpwood amounted to 2.26 million m³, a 6% decline on 2009.
Capital expenditure grew by 12% to €45.5m. Over 70% (€33.4m) of this was invested in replanting forests (6,000ha), ensuring the future of the forest resource and enhancing and maintaining the forest estate.
“The challenge remains to continue to deliver on our strategy in the current economic environment, with all indications that 2011 will be a more difficult year,” Mr Gunning said.
“GDP growth of just 2% is forecast for the UK and recessionary pressures are set to continue in Ireland.”
Cost savings will remain a major focus for the group in 2011.
