• Profits of €22.46m for 2006, up 14% on 2005
• Acquisition of Medite completed
• €300 million in sales forecast for 2007

Dublin, Wednesday April 25^th 2007 – Coillte, the forestry and forest products business, today announced 2006 profits up 14% to €22.46 million, from €19.65 million in 2005. The year also saw the purchase of Medite Europe Ltd for €66 million, the company's largest acquisition to date.

During the period Coillte recorded turnover of €213.79 million, down slightly on 2005, as a result of lower OSB (Oriented Strand Board) sales in the US by SmartPly and the closure of a number of underperforming businesses. The acquisition of Medite is expected to increase Group turnover in 2007 by approx 50%.

Late in 2006 Coillte reorganised into 3 operating divisions – Coillte Forest, Coillte Enterprise and Coillte Panel Products.

Coillte Forest, which manages the Group's forestry business had a good year with sales of 2.69 million m³  generating revenues of €94 million. The company also had its Forest Stewardship Council (FSC) certification renewed, a clear endorsement of its management of the forests in accordance with strict economic, environmental and social principles. FSC certification is a vital marketing tool for timber and forest products.

Coillte Enterprise, the Group's venturing arm, was active on a number of fronts in 2006, optimising the value of the Group's land assets. In addition, its nurseries business sold 38 million plants and it acquired the assets of Greenwood Trees in Scotland, which will help expand this business in the UK.

The newly formed Coillte Panel Products Division comprising SmartPly in Waterford and the recently acquired Medite Europe Ltd business in Clonmel is now a significant player in the European panels sector and performed well in 2006.

Commenting on the results, Chairman Brendan McKenna said:

"Following an excellent year which saw increases in profits and a major acquisition, we have entered a new phase in Coillte's growth. We are looking to grow the business in each of our core areas of activity. The new divisional structure will facilitate business development, customer service and a focus on cost control across the Group."

Looking to 2007, Chief Executive David Gunning said:

"Coillte is now more international in scope and outlook, following the acquisition of Medite in particular. Fifty percent of the €300 million sales revenue forecast for 2007 is expected to come from outside Ireland. The future growth of the Company will be focused on maximising the returns from its current assets and evaluating growth opportunities which fit with our strategic objectives."

David Gunning was appointed Chief Executive during 2006, following the retirement of his predecessor Martin Lowery, and a new executive team was established.

ENDS

For further information please contact:

Tom Byrne
Head of Corporate Communications, Coillte 
Tel: (353 1) 201 5231 / 086 810 4224

Alison Mills
Q4 Public Relations
Tel: (353 1) 475 1444 / 086 851 2890

 

Note to Editors:

Divisional Review:

Coillte Forest – manages all aspects of the Group's forestry business

• The full year's production of 2.69 million m³ of timber was sold, generating revenue of €94 million
• Timber prices increased during the year, reflecting strong international demand
• The €8 million development at Lough Key Forest and Activity Park, a joint venture with Roscommon County Council, was progressed and is due to open in 2007
• A Forest Recreation Infrastructure Upgrade Programme supported by  Bord Fáilte, valued at €5.3 million, was implemented  

Coillte Enterprise –  the venturing arm of the Group, pursues business opportunities outside the forest and wood sectors

• Coillte Enterprise sold 373 hectares of land for a range of diverse uses
• The pipeline of land added value projects remains strong
• Energy has been identified as a potential development area for the Group
• Coillte Nurseries increased exports and targeted new market opportunities in Ireland

Coillte Panel Products –  SmartPly Europe Ltd and Medite Europe Ltd manufacture and market leading brands of OSB and MDF

• SmartPly Europe Ltd,based in Belview, Waterford performed ahead of budget following a change in its sales mix to address falling prices in the US market
• SmartPly sales increased by 12.5% in Ireland, 18.5% in the UK and 10% in Continental Europe. Production output was 309,000 m³
• In November 2006 Coillte acquired Weyerhaeuser Europe Ltd in Clonmel, now renamed Medite Europe Ltd and the first few months' results of ownership augur well for 2007
• Medite employs 150 people in Clonmel and as well as supplying the Irish market, exports MDF to the UK, mainland Europe and beyond for a range of applications from children's toys, exhibition stands and shop fitting, to hi-fi speakers, cabinets, decorative mouldings and laminate flooring
• European demand for MDF and OSB is growing steadily and Medite and SmartPly are well placed to benefit from that trend.

 Downloads Coillte's Annual Report and Accounts for 2006 here