THE COILLTE group recorded an after tax profit of €4.2 million in 2009 despite a trading loss of €14.3 million. Profits were €9.2 million in 2008.

The chief executive of the State forestry group, David Gunning, said this was achieved with a substantial contribution coming from an exceptional profit of €18.5 million.

He said Coillte had completed the sale of immature forests to the Irish Forestry Unit Trust and Allied Irish Pension Trust bringing in €33.8 million to strengthen the group’s balance sheet and curtail increases in debt.

The group’s core debt, he said, was “solid” and was in the region of €162 million by the end of 2009. The pension deficit was estimated at €72.4 million.

Turnover he said was €206.9 million in 2009 compared to €249 million in the previous year in what he described as harsh trading conditions.

“The fall in the value of sales resulted primarily from lower average prices for logs and panel products coupled with the negative impact of the exchange rate on exports to the UK,” he said.

Exports to Britain held up well especially in the last quarter of 2009 but sterling activity meant a decline in the value, he said.

To meet the demand, the company had adjusted its timber supply programme to meet the needs of sawmill customers who exported to the UK, with the result the group sold 5 per cent more last year than in 2008.