Oct 29, 2012. /Lesprom Network/. Plum Creek Timber Company, Inc. announces 3Q earnings of $59 million, or $0.36 per diluted share, on revenues of $354 million. Earnings for the 3Q 2011 were $50 million, or $0.31 per diluted share, on revenues of $293 million. Earnings for the first nine months of 2012 were $124 million, or $0.76 per diluted share, on revenues of $985 million. Earnings for the first nine months of 2011 were $132 million, or $0.81 per diluted share, on revenues of $852 million, as the company said in the press release received by Lesprom Network. Adjusted EBITDA, a non-GAAP measure of operating performance, for the first nine months of 2012 was $380 million, up from $317 million in the same period of 2011. The company ended the quarter with $320 million in cash and cash equivalents. A reconciliation of adjusted EBITDA to net income and cash flow from operations is provided as an attachment to this release. “We had a good 3Q with earnings near the top of our guidance range,” said Rick Holley, Plum Creek’s president and CEO. “Demand for wood products continues to improve and that has translated into improved financial performance for our timber and manufacturing businesses. Combined, these business segments have grown operating income by $19 million and adjusted EBITDA by $36 million during the first nine months of the year. We continue to be on track to grow our adjusted EBITDA by approximately $50 million this year.” The Northern Resources segment reported operating income of $5 million for the quarter, down $2 million from the 3Q 2011. The lower operating income was primarily the result of a $2 decline in average sawlog prices due to the decline in export log prices experienced over the past year. Average pulpwood prices of $42 per ton were unchanged when compared to the 3Q 2011. Overall the third quarter’s harvest was approximately 40,000 tons, or 4%, lower than the same period of 2011. Operating income in the Southern Resources segment was $23 million, an increase of $2 million from the $21 million reported during the 3Q 2011. Sawlog prices were stable at $20 per ton and pulpwood prices of $10 per ton were $1 per ton higher than the prices reported for the 3Q 2011. As planned, harvest volumes in 2012 were higher than those in 2011. The company continued to emphasize the harvest of pulpwood to capture relatively attractive values in these markets and preserve the value of larger diameter sawlogs. Pulpwood volumes were up 318,000 tons, or 17%, higher compared to the 3Q 2011. The sawlog harvest was up 244,000 tons, or 19%, higher from 2011 levels. The Manufacturing segment reported $9 million of operating income for the 3Q, compared to the $3 million of operating income reported for the 3Q 2011. Profit growth was driven by improving demand and prices for the company’s plywood and medium density fiberboard (MDF) products. Sales volumes for plywood and MDF increased 18% and 43% respectively. Plywood prices increased 13% and MDF prices improved 5% during the same period. Average lumber prices increased 7% while lumber sales volume declined 8% compared to the 3Q 2011. The company expects its full-year harvest to approximate 17.5 million tons, including approximately 700,000 tons from this year’s timber deed acquisition. During the 4Q, the company expects to harvest approximately 1 million tons in its Northern Resources segment and approximately 3 million tons in its Southern Resources segment. In the 4Q, seasonally lower sales volumes are expected to reduce the Manufacturing segment’s profitability compared to the 3Q. The company expects to report 4Q earnings between $0.25 and $0.30 per share. “Our operations continue to perform well and our operating flexibility allows us to respond quickly to our customers’ needs as markets improve. We expect the results from our timber business to improve further in 2013 as the housing market and economy continue to strengthen,” continued Holley. “We are excited about the future, and look forward to 2013 with optimism. Disciplined capital allocation is just as important in a recovery as it is during a downturn. It remains our top priority at Plum Creek. We continually evaluate the best use of the cash we generate with the goals of delivering value to shareholders while growing the per-share value of the company over time,” concluded Holley. Plum Creek is one of the largest landowners in the nation and the most geographically diverse, with approximately 6.4 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest.