Coillte announced its results for 2004 following its AGM in Dublin today. The Group reported a profit of €35.07 million, up 37% on 2003. The Group performed well in most areas with a solid performance in its forestry business, improved performance at OSB manufacturer SmartPly Europe Ltd., and good results in its land-based businesses.

Speaking at the results’ announcement the Chairman of Coillte, Brendan McKenna emphasised that all of the profits generated were reinvested in the business. Capital expenditure during the year amounted to €52.3 million funded from the Group’s resources and grants. Over 80% of this figure was spent on reforestation of sites previously harvested, forest road building, afforestation of new sites, and estate improvement works.

In the Group’s forestry business, Coillte Forests, total log sales remained at the 2003 level of 2.66 million m3. While a similar volume of logs was sold as in 2003 the contribution from log sales declined by 5% over 2003. This was because, though the level of pulpwood sales increased by 100,000 m3 (13%), this was offset by a reduction in sawlog sales of 100,000 m3 (5%). Log prices declined during the year. The increased sales of pulpwood were due primarily to increased pulpwood usage by Coillte’ s subsidiary SmartPly Europe Ltd.

Performance improved significantly at SmartPly during the year. Since 2002, when Coillte acquired 100% ownership of SmartPly., a turnaround programme has been completed successfully. SmartPly has performed well under Coillte management and is competing strongly in its targets markets in Ireland, the UK, Continental Europe and the US. Expansion of manufacturing capacity is being considered currently.

Significant progress was made in the Group’s land-based businesses including the sale of valuable wind farm sites, sale of non-strategic property and leasing of radio mast sites. Planning permission was received for two windfarm sites bringing to nine the number of planning-permitted windfarm sites on Coillte land. These sites, which are the subject of co-development agreements with established wind energy companies, have a total capacity of 300 megawatts. Contracts were also signed with third-party wind farm developers to sell or lease two wind farm sites.

In Coillte Enterprises, Coillte Forestry Services planted a total of 12,256 hectares during 2004. Restocking of harvested areas accounted for 9,130 hectares, 74% of Coillte’s total planting activity. Increased Government funding and greater clarity about entitlements under the Single Farm Payment Scheme improved confidence in the afforestation market and new planting increased substantially over 2002 and 2003 as a result. This also had a positive effect on our forest nurseries business where revenue and plant sales volumes were both well ahead of 2003.

Griffner Coillte commenced operations in mid-2003 and the start-up phase continued during 2004. During the year the company succeeded in establishing the Griffner Coillte brand in the self-build market in Ireland. For the immediate future the company will focus on increasing sales and optimising production output.

Commenting on the performance Coillte Chairman, Mr. Brendan McKenna, said “The positive outcome in 2004 resulted primarily from improved performance at SmartPly along with good performances across the Group’s businesses”. He added that, as well as generating an increasing level of profit, the growth in the carrying value of Coillte’s forests since 1989 (when Coillte was set up) amounts to €480.8 million. This represents a very significant investment in future shareholder value.

Looking to 2005 Martin Lowery, Chief Executive said he is optimistic that Coillte will continue to grow. “In 2005 Coillte will focus on implementing the strategy updated in 2004, which includes optimising the value of the forests, working with sawmill customers to improve the market position of Irish timber, improving efficiency in Coillte and throughout the wood supply chain, building on the success of its industrial processing activities and developing innovative ways to add value to its land asset”.

Gerry Egan, Company Secretary: 01 2011173 / 086 2591409
Cliodhna Parker, Public Relations Manager: 01 2011143 / 086 2236493