“This decline can be primarily attributed to the imbalance between supply and demand in the timber markets,” explains Director General Esa Härmälä.
Metsähallitus also made significant investments in order to achieve its non-monetary goals. The estimated value of general social obligations is Euro 56 million.
“For each two Euro we earn, investments of one euro were made in promoting biodiversity in the multiple-use forests included in productive forest land, and to promote their recreational use,” Härmälä says.
The Board of Directors of Metsähallitus proposes that Euro 106 million of the profits be transferred to the state. This transfer will be adopted by the Government in April; the Finnish Parliament decides on the distribution of profits.
The land area available for business operations shrank by 42,000 hectares last year. Combined with the conservation decisions made in previous years and the sale of forest land areas, this has a major impact on the generation of operating revenue.
Metsähallitus adjusted its cost structure to meet the current market conditions. Despite a decline in the demand for timber, Forestry was able to reach its profit target. According to Härmälä, property business decreased for two reasons: Firstly, the wind power projects carried out by Laatumaa failed to proceed as planned due to the tariff decisions that were postponed at the year-end. Secondly, the sale of forest land reach a record high in 2014, and the current volumes represent the standard level.
Metsähallitus is a state-owned enterprise that runs business activities while also fulfilling many public administration duties. Metsähallitus administers more than 12 million hectares of state-owned land and water areas.
