Coillte, Ireland's leading natural resources company has announced an operating profit before exceptional items of €35m for 2012.

The annual results published, also show the company paid a dividend of €2m to the State.

Coillte Group turnover increased by €3m during 2012 to €262.2m an increase of 1%.

Acting Chief Executive Mr Gerry Britchfield said: "Coillte delivered a strong financial performance in 2012, a challenging year in our main markets, and I am pleased to report that we delivered an operating profit of €35m."

Coillte employs 1,000 people in Ireland, the UK and Europe, across four main business areas: forestry management, manufacture and export of wood panel products, renewable energy and land management. Export sales account for 56% of Coillte Group turnover and 65% of this figure was sold into the UK market in 2012.

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Coillte Forest, the division that manages all aspects of the forestry business, had a satisfactory financial performance in 2012, with prices for both standing and harvested timber performing well.

Mr Britchfield said: "Demand for sawn timber in the UK was strong in the first half of 2012 and this was reflected in demand from Irish sawmills. The second half of the year was significantly more challenging with the UK market once again dipping into recession.

"The construction sector, where Coillte generates the majority of its revenue, remains a challenging environment both domestically and overseas. I am confident however that we can continue to face these challenges by seeking out new markets and increasing the range of products and services we offer. In 2012 as part of our transformation we restructured our forest business, with a view to enhancing the commercial value of all stages of the forestry production cycle."

(CD/MH)