Severe oversupply in sawn timber markets contributed to Vapo Timber recording a loss in the first half of 2011.
The business recorded a loss of €100,000 (2010: €4m profit), while turnover was up marginally to €69m (2010: €68.8m).
Vapo Timber said oversupply led to lower sales prices and higher inventory levels. Output was increased by 5% but sales prices were 3% lower than the same period in 2010.
The wider Vapo Group, which also operates biofuels, bioheat and environmental divisions, saw steady operating profits of €30.8m from a €418.1m turnover.
“Additional challenges in the second half include higher raw timber prices and the general uncertainty in the economy,” it said.
