Potlatch reports 2Q net earnings of $11.7 million

Jul 30, 2010. /Lesprom Network/. Potlatch Corporation reported financial results for the 2Q ended June 30, 2010, and announced that it has entered into an agreement to sell approximately 41,500 acres of Wisconsin and Arkansas timberland to RMK Timberland Group (RMK) for approximately $29 million. The sale is expected to close in August 2010. The company has also signed an option agreement with RMK to sell approximately 46,500 more acres in the 4Q for approximately $35 million. “All of our business segments reported solid quarterly results, as strong business conditions continued through the 2Q,” said Michael Covey, Chairman, President and CEO of Potlatch Corporation. “The price increases and demand that benefited our Wood Products segment in the 1Q carried into our Resource segment’s business, validating our decision to defer harvest levels last year. Across all products and regions, our Resource business realized 20% higher selling prices over the 1Q 2010, and 29% higher selling prices versus the 2Q 2009. Our Wood Products segment delivered quarterly operating income for the second consecutive quarter, as both lumber sales prices and shipment volumes increased again in the 2Q. Lumber sales prices increased 11 and 34% as compared to the 1Q 2010 and the 2Q 2009, respectively. Our Real Estate segment contributed its highest quarterly operating income since the 1Q 2009,” concluded Mr. Covey. Net earnings for the quarter, including discontinued operations, were $11.7 million, or $0.29 per diluted common share, compared to $3.8 million, or $0.09 per diluted common share, for Q2 2009. EBITDDA in the 2Q 2010 was $33.1 million, nearly double the 1Q amount. Revenues for the quarter rose to $128.98 million from $78.78 million in the same quarter of last year. During the 2Q, Potlatch paid a regular quarterly cash distribution on the company’s common stock of $0.51 per share. Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.6 million acres of timberland in Arkansas, Idaho, Minnesota and Wisconsin. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its forest resources. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary.