State forestry body Coillte has reported operating profits before exceptional items of €48.5m, a rise of 13% on 2004. However, after exceptionals pre-tax profits fell to €19.65m.
The company said it had implemented an early retirement scheme during the year under which 90 staff left the company.
A further €10.5m was provided to cover ex-gratia payments and a contribution to the pension fund and an exceptional impairment provision of €3.25m against the Group's investment in Griffner Coillte.
The company said business performance was strong with good contributions from the Group's forestry, land development and SmartPly wood panel businesses.
In the Group's forestry business, Coillte Forests, the volume of logs sold increased by 3% and Sawlog sales increased by 2%.
However the margin on log sales decreased by 4% continuing a downward trend in recent years that Collite termed a serious concern.
During the year Coillte sold waste management sites to Cork, Kerry, and Wexford Co. Councils and a major windfarm site in Co. Kerry.
Coillte said the Christmas tree market was facing difficulties with over-supply depressing prices which lead to trading losses and a decision to write down its stock by €4.3m.
The results also include an exceptional impairment provision of €3.25m against the Group's investment in Griffner Coillte.
Coillte's CEO Martin Lowery said the Group had capital investment of €48.75m most of which was invested in reforestation of sites previously harvested, road building, improvement of the estate and afforestation of bare land.
He also said that the net increase in value of forests and land during the year was €26.8m.
Coillte also confirmed that it is in negotiations with Weyerhaeuser Company to purchase its fibreboard business in Clonmel.
