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APV targets Ft 60 bln revenue from forestry companies in 2007

The State Privatization and Holding Company (APV) expects the 19 forestry companies under its ownership to generate pre-tax profit of Ft 2.2 bln on revenue of Ft 60 bln in 2007, APV said on Friday.

At a meeting on Thursday, APV's board approved the companies' business plans for 2007-2009. APV noted that about 40% of the 970,000 hectares of forested areas overseen by the companies involve nature protection work which is loss-making. But the companies have still managed to operate profitably for the last several years. APV has not, however, taken a dividend. According to the business plans, the companies will still pay Ft 8.3 billion more into the budget than the amount of budget funding they receive over the next three years. The state-owned forestry companies employ almost 6,000 people. APV noted that the forestry companies will finish forest rehabilitation related to the almost Ft 1.5 billion damages suffered in the flooding in 2006 this year. (Bloomberg)