The business posted an operating loss of €8m (2011: -€3.8m), though the the loss increased to €41m for the whole wood products division when writedowns in the wood pellet business were factored in.
Vapo Timber’s sales were down to €86m (2011: €97.2m).
“The economic downturn and a decline in construction in the main markets has signficantly decreased demand for sawn timber, in addition to which high raw material costs are weighing on profitability,” Vapo said.
The pellets business, part of the Vapo Wood Products division, recorded turnover of €72.6m and an operating loss of €5.4m (2011: -€36.8m).
