Potlatch reports 4Q earnings of $8.9 million

Feb 08, 2011. /Lesprom Network/. Potlatch Corporation reported financial results for 4Q and full year ended December 31, 2010. Earnings from continuing operations for 4Q 2010 were $8.9 million, compared to $2.9 million, or $0.07 per diluted common share for Q4 2009, as the company said in a press release received by Lesprom Network. In 4Q 2010, Potlatch completed a non-strategic timberland sale of approximately 29,000 acres in Wisconsin and 17,400 acres in Arkansas to RMK Timberland Group, a timber investment management organization, for $36.1 million, which provided $0.16 of positive EPS impact. EBITDDA in 4Q 2010 was $42.3 million, compared to $56.4 million in 3Q 2010 and $13 million in 4Q 2009. Excluding the 4Q 2010 non-strategic timberland sale in Arkansas and Wisconsin, EBITDDA was $7.4 million and EPS was $0.06. Excluding the 3Q 2010 non-strategic timberland sale, EBITDDA was $28.2 million and EPS was $0.35. Earnings from continuing operations for the full year 2010 were $40.3 million, compared to $81.4 million for the full year 2009. Operating income for the Resource segment was $62.1 million in 2010 compared to $81.8 million in 2009. Total harvest volumes increased 8% in 2010 over 2009. The timber deed sale in September 2009 provided $41.5 million of operating income. Operating income for the Real Estate segment totaled $30.4 million in 2010 compared to $48.9 million in 2009. The decreased operating income was due to selling higher basis non-strategic timberlands in 2010 compared to the non-strategic timberlands sold in 2009. EBITDDA for the Real Estate segment was $79.1 million in 2010 compared to $59.6 million in 2009. The Wood Products segment had operating income of $7.1 million in 2010 compared to an operating loss of $20.5 million in 2009. The 2009 operating loss included a $3 million asset impairment charge. Corporate expense, excluding net interest expense, was $28.9 million in 2010 compared to $31.4 million in 2009. The 2010 and 2009 corporate expense includes Avery Landing environmental cleanup expense of $4.1 million and $0.7 million, respectively. Net earnings for the full year 2010, including discontinued operations, were $40.4 million, compared to $77.3 million for the full year 2009. Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.5 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.