Potlatch reports 2Q net earnings of $8.4 million

Jul 25, 2011. /Lesprom Network/. Potlatch Corporation's net earnings for the 2Q were $8.4 million, compared to $11.7 million for 2Q 2010, as the company said in a press release received by Lesprom Network. The Wood Products segment reported operating income of $2.8 million in 2Q 2011 compared to $2.9 million in 1Q 2011 and $6.0 million in 2Q 2010. A positive mark to market adjustment in 2Q 2011 related to lumber hedges partially offset the effects of lower sales prices and reduced shipments compared to both 1Q 2011 and 2Q 2010. “Industry conditions for our Resource and Wood Products segments remained challenging during the 2Q, but our Real Estate segment exceeded our expectations,” said Michael Covey, Chairman, President and CEO of Potlatch Corporation. “Harvest levels were lower in both the Northern and Southern regions due to unrelated factors. In our Southern region, sawlog prices drifted lower during the 2Q, causing us to defer some of our planned harvest in Arkansas. Log pricing was more favorable in our Northern region during the 2Q, however, a very late spring break-up delayed our harvesting operations by three to four weeks compared to normal, negatively impacting our planned harvest. Our regional diversity will allow us to shift harvest volumes in the second half of the year from the Southern to the Northern region to capture market opportunities. In our Wood Products business, the stronger prices for wood products we experienced during the 1Q did not continue into the 2Q, modestly impacting results. Our Real Estate segment had another solid quarter, completing 47 land sales transactions during the quarter,” concluded Mr. Covey. 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 1.5 million acres of timberland in Arkansas, Idaho and Minnesota. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary.