SEATTLE - Plum Creek Timber Company Inc. (NYSE:PCL) posted earnings of $59 million for the third quarter on revenues of $354 million.
The forest products company bested its third quarter of 2011 for both earnings and revenues, with gains of 18% and 21.5% respectively.
Plum Creek's MDF, plywood and lumber manufacturing segments contributed $9 million of operating income for the third quarter, three times operating income reported for the third quarter of 2011. Plum Creek said improving demand and prices for its plywood and MDF products played a key role in boosting profits. Prices increased 13% for plywood and 5% for MDF during the same period.
“We had a good third quarter with earnings near the top of our guidance range,” said Rick Holley, Plum Creek 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.”
Plum Creek projects the profitability of its manufacturing products to decline in the fourth quarter due to seasonally lower sales volumes.
“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.
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