Potlatch earnings rise

Timber and wood products company Potlatch Corp. reported third-quarter earnings from continuing operations of $41.2 million, or $1.04 per share, up from $31.1 million a year earlier.

Revenue totaled $436,066,000 compared to $396,752,000 a year ago.
Analysts polled by Thomson Financial expected Potlatch to earn 76 cents a share on $413.08 million in revenues, on average.

Net earnings totaled $41 million, up from $25.7 million. This includes net losses from discontinued operations of $0.2 million in the recent quarter and $5.4 million a year earlier.

CEO Michael Covey said in a statement that the resource segment benefited from strong volume and improved pricing, particularly in pulp / paper and consumer products. The wood products segment generated positive cash flow and income despite the U.S. housing slump and weak pricing, he said.

Potlatch, based in Spokane with major operations in Lewiston, has been increasingly active in the land trade. Real estate operating income totaled $2.4 million in the Sept. 30 quarter, up from $0.8 million a year earlier.

Covey said the company is on course to achieve its goal of selling 15,000 to 20,000 acres of non-strategic land by the end of the year. In conjunction with its purchase of 179,000 acres in Idaho, the company has matched planned land sales with as many closings as possible with tax-deferred exchange opportunities, he said.

He said the company is well positioned through this year to capture strong demand for rural, recreational real estate. Potlatch expects continued strong performance from its pulp and paperboard segments, and weakness in the lumber market for several quarters, he said.