"We are very pleased with the strong 3Q operating results provided by each of our business segments," said Michael Covey, chairman and CEO of Potlatch Corporation. "Our Resource segment's harvest volumes, revenues and earnings increased significantly in the 3Q, which is typically our seasonally strongest quarter of the year. While average lumber prices were lower than the 2Q, prices bottomed near the end of the 2Q and increased during the 3Q. Our lumber shipments have remained strong. Our Real Estate segment had another good quarter, completing 53 sales transactions. This is among the highest number of transactions that we have closed since the REIT conversion in 2006," concluded Mr. Covey.
"Each of our business segments will be influenced by normal seasonal factors in the 4Q as we close out a solid year. We expect our total 2013 harvest to be approximately 3.7 million tons. Log prices will likely decrease slightly in the fourth quarter due to seasonal factors, mix and timing. We expect performance of our Wood Products business to be comparable to the third quarter. Our Real Estate business remains strong as interest in rural recreational real estate continues to be solid, as witnessed by the number of sales transactions and acres sold in the last two quarters. As we look into 2014, we expect housing starts to continue to rise and anticipate firmer log and lumber prices ahead. We will provide an update on planned 2014 harvest levels during our 4Q earnings call in early 2014," concluded Mr. Covey.
Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.4 million acres of timberland in Arkansas, Idaho and Minnesota. 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.