South African forest products group the York Timber Organisation (Yorkcor) has reported a 66% growth in first half sales and profits.
Yorkcor’s gross profits increased to R64m from R39m for the six months ending June 30, while sales grew to R125.9m from R76m.
Total softwood sales experienced a 5.93% growth compared to a year ago but the company believes demand for logs may have peaked.
Softwood lumber sales by volume were up 14% and the average market price for roadside sawlogs grew by about 10%. Yorkcor said lumber prices remained “firm”.
The company said its relationship with the department of water affairs and forestry had improved since the latter’s payment of R34.7m in compensation for the closure of its forest operations, which had been a major source of sawlogs for the York Lumber sawmill in Bushbuckridge.
Yorkcor also recently claimed R21.8m in damages from state forester the South African Forestry Company Ltd for its refusal to honour a log supply contract.
