ForestrySA experienced another strong year in 2001/2002 in line with an encouraging improvement in the Australian residential construction market. Net profits from trading before revaluation increased 8.8 percent to A$35.5 million compared with A$32.6 million last year. ForestrySA’s strong performance was consistent across the range of products with demand for sawlog and chip exceeding budget projections. ForestrySA supplied industry with 933 062 cubic metres of sawlog and 595 543 tonnes of pulplog.

ForestrySA has delivered strong contribution to the South Australia Government finances with total dividends and tax equivalent payments from profit amounting to A$22.7 million. The Corporation also made a one-off special payment of A$20.0 million from previous retained earnings. At the same time, the Corporation moved to implement the principles and goals articulated in the ForestrySA Charter. The Board and Executive team devoted considerable time and effort to the development of long-run strategic and corporate plans in 2001.

The Corporation benefited from a rebound in total building commencements in Australia, reflecting an exceptionally strong upturn in the new residential sector as a result of the boost to demand from the Commonwealth Government’s First Home Owners Grant. However the level of dwelling approvals is unlikely to be sustainable and the Corporation is expecting a moderate fall in revenue in the coming 12 months. Although the Corporation anticipates a fall in demand sometime in the next 12 months, new dwelling approvals and commencements in the June quarter should carry through into the September quarter delaying any fallout until probably the end of 2002.

The Corporation adheres to rigorous environmental standards for it’s forest practices and is committed to sustainable forest management. To ensure both access to markets and consumer acceptance of our products, certification of ForestrySA's forest management practices is required. The Corporation is anticipating certification to the international standard ISO 14001:1996 for Environmental Management Systems (EMS) in July 2002.

Over the year ForestrySA has worked to strengthen the ties between the three pillars of our Corporation: customers, stakeholders and employees. Operating in a safe and sustainable fashion, with a strong emphasis on environmental stewardship, while providing an appropriate return to the Government is the basis of operational excellence.

The uncertain economic conditions will present some challenges to our business. Nevertheless, we remain confident in the long-term fundamentals of the Corporation’s balance sheet. We will continue to strengthen our stakeholder relationships, and we will also continue to closely monitor the market in order to maintain optimal production and service levels to our customers.

Sybella Blencowe Ian Millard
Chairperson Chief Executive



THE SOUTH AUSTRALIAN FORESTRY CORPORATION
	Contents >> Corporate Score Card >> Executive Introduction >> Corporate Overview >> Legislation Administered by the Corporation >> Significant Achievements and Inititives >> Key Initiatives and Targets for 2002/03 >> The Corporation Structure >> SA Forestry Corporation Board >> Business Performance >> Production Activities >> Forestry Protection >> Community Service Activities >> Corporate Sustainability >> Equal Employment Opportunity Programs >> Contractual Arrangements >> Fraud >> Use of Consultants >> Freedom of Information Statement >> Charter of the SA Forestry Corporation >> Forest Statistics >> Forestry SA Reserves >> Financial Statement • FinancialPerformance for the year ended 30 June 2002 • Financial Position as at 30 June 2002 • Cash Flows for the year ended 30 June 2002 >> Notes to and forming part of the Financial Statement • 1 Role and Function of the SAFC • 2 Accounting Policies • 3 - 13b • 14 - 24 • 25 - 28 • 29 Combined Full Year Results >> Auditor General’s Report rt	EXECUTIVE INTRODUCTION


			ForestrySA experienced another strong year in 2001/2002 in line with an encouraging improvement in the Australian residential construction market. Net profits from trading before revaluation increased 8.8 percent to A$35.5 million compared with A$32.6 million last year. ForestrySA’s strong performance was consistent across the range of products with demand for sawlog and chip exceeding budget projections. ForestrySA supplied industry with 933 062 cubic metres of sawlog and 595 543 tonnes of pulplog. ForestrySA has delivered strong contribution to the South Australia Government finances with total dividends and tax equivalent payments from profit amounting to A$22.7 million. The Corporation also made a one-off special payment of A$20.0 million from previous retained earnings. At the same time, the Corporation moved to implement the principles and goals articulated in the ForestrySA Charter. The Board and Executive team devoted considerable time and effort to the development of long-run strategic and corporate plans in 2001. The Corporation benefited from a rebound in total building commencements in Australia, reflecting an exceptionally strong upturn in the new residential sector as a result of the boost to demand from the Commonwealth Government’s First Home Owners Grant. However the level of dwelling approvals is unlikely to be sustainable and the Corporation is expecting a moderate fall in revenue in the coming 12 months. Although the Corporation anticipates a fall in demand sometime in the next 12 months, new dwelling approvals and commencements in the June quarter should carry through into the September quarter delaying any fallout until probably the end of 2002. The Corporation adheres to rigorous environmental standards for it’s forest practices and is committed to sustainable forest management. To ensure both access to markets and consumer acceptance of our products, certification of ForestrySA's forest management practices is required. The Corporation is anticipating certification to the international standard ISO 14001:1996 for Environmental Management Systems (EMS) in July 2002. Over the year ForestrySA has worked to strengthen the ties between the three pillars of our Corporation: customers, stakeholders and employees. Operating in a safe and sustainable fashion, with a strong emphasis on environmental stewardship, while providing an appropriate return to the Government is the basis of operational excellence. The uncertain economic conditions will present some challenges to our business. Nevertheless, we remain confident in the long-term fundamentals of the Corporation’s balance sheet. We will continue to strengthen our stakeholder relationships, and we will also continue to closely monitor the market in order to maintain optimal production and service levels to our customers. Sybella Blencowe Ian Millard Chairperson Chief Executive