Pope Resources to continue harvest cuts

Oct 30, 2008. /Lesprom.com/. US timberland management firm Pope Resources is to continue to curtail its harvesting volumes until market conditions improve, Timber Industry Magazine reported. The Washington-based company, which has over 400 thousand acres of timberland under management, recorded a marked decline in its fee timber business area in the 3Q, with operating income down 76% to $929,000, which was affected by its already announced reductions in harvest volumes. This saw harvest volumes fall from 15 million board feet in the third quarter of 2007 to 12 million board feet this year. This was compounded by a 20% decline in average realised log prices, which fell from $611 per thousand board feet to $489. “The difficult market conditions faced by our fee timber and real estate business segments are expected to extend at least through 2009,” said President and CEO David Nunes. “Fortunately our strong balance sheet allows us the flexibility and patience to be able to defer our timber harvest until market conditions improve.” Pope’s timberland management and consulting operation reported an operating loss of $135,000 during the quarter, although this was up from the $244,000 loss tabled in 2007. Pope said this was due to the establishment of its timber fund business activities.