SPOKANE, Wash. - Despite selling 1,800 acres of forestry for $20 million, the recently-formed lumber giant PotlatchDeltic Corp. reported that its second-quarter profits are down 63 percent from the same time last year.
The company, who runs six lumber manufacturing facilities, one MDF facility, one industrial plywood mill, and two million acres of timberlands across the U.S., reported net income of $17.1 million for the priod ending June 30, compared to $46.1 million last year. Revenue fell close to 20 percent.
“Our Timberlands and Real Estate businesses continued to perform well during the quarter despite extremely wet weather and difficult operating conditions in the South while our Wood Products results declined significantly due to a 35% drop in lumber prices compared to one year ago,” said CEO Mike Covey.
Covey also the company returned $79 million to shareholders during the first half of the year, but remains hopeful. “We continue to invest capital in our mills and are on pace to complete $40 million of improvements to expand capacity and increase grade recovery,” he said.
Potlatch and Deltic Timber Corp. merged early last year, forming a wood products and forestry behemoth. PotlatchDeltic employs more than 1,500 and serves more than 200 customers. Its lumber capacity is heavily weighted towards high-margin southern yellow pine lumber, with over half of the company’s capacity being produced at its three southern mills.
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