RMK earned a return on sales of EUR 37 million in the first quarter 04.05

RMK’s return on sales for the first quarter of 2011 amounted to EUR 37.1 million. In the same period last year, RMK earned a return on sales of EUR 25.8 million, with annual growth being 44%.
The net profit for the first quarter of 2011 is EUR 12.4 million. This is twice as much as in the same period last year, when the net profit was EUR 6.3 million.

Most of the profit was earned from sales of forest material and wood chips. In the first three months of this year, RMK sold 0.8 million cubic meters of forest material for EUR 34 million. The average sales price of forest material was EUR 44.5 per cubic meter, which is 20% higher than in the same period last year. In the first quarter, RMK sold 0.07 million cubic meters wood chips in the amount of EUR 2.5 million. The average sales price was EUR 34.40 per cubic meter.

The largest unplanned source of expenses for the year, which began with such excellent sales results, was snow. ”We have removed snow from 22,000 km of roads this year and, as a result, the road maintenance budget has exceeded the planned budget by 60%,” Tavo Uuetalu, Member of the Management Board of RMK explained. The costs on snow removal in the first quarter were EUR 276,800.

In order to provide the opportunities for spending time in nature under the common right of access and to promote nature awareness of people, RMK spent EUR 280,000 in the first three months of 2011.

In the 2011 budget, RMK estimates EUR 125 million of return on sales and a EUR 27 million net profit.

RMK is a profit-making state agency established under the Forest Act and its main function is the economical and efficient management of the state forest. RMK grows forest renewal material, organises forest works, deals with the sale of forest and timber and organises practical nature conservation activities. In addition to that, RMK creates hiking and forest recreation opportunities at its recreation areas, Estonia’s five national parks and nearly 40 other reserves, and shapes people's knowledge of nature. RMK manages 38% of Estonia’s forests.

Additional information:
Anneli Viik
RMK’s Head of Finance and Administration
Tel. 676 7740, 501 4740
E-mail anneli.viik@rmk.ee