SEATTLE -- Plum Creek Timber Company Inc. (PLC) announced second quarter earnings of $44 million on revenues of $284 million compared to Q2 2010 earnings of 2010 $35 million on revenues of $258 million.
Plum Creek's earnings for the first six months of 2011 were $82 million on revenues of $559 million compared to first-half 2010 earnings of $122 million on revenues of $575 million.
Meanwhile, Plum Creek reported that it has agreed to acquire 50,000 acres of industrial timberland located in northwest Georgia and northeast Alabama from Forestar for $75 million. The transaction is expected to be concluded during the third quarter.
"Good results from our Real Estate segment offset weaker than anticipated results from our timber operations," said Rick Holley, Plum Creek's president and CEO. "Sawlog markets in the West and Northeast remained attractive during the second quarter however, sawlog markets in the South continued to be challenging due to extremely dry weather and weak domestic demand."
Plum Creek's Manufacturing segment reported $5 million of operating income for the second quarter, compared to the $10 million operating income reported for the second quarter of 2010. The 2010 results included a $2 million benefit from one-time gains on the sale of lumber equipment. Prices for lumber and medium density fiberboard (MDF) were largely unchanged from the second quarter of 2010 while plywood prices were approximately four percent lower. Lumber and plywood volumes were approximately five percent lower while MDF sales volumes were 14 percent lower. MDF demand was stronger last year due to temporary disruptions to global MDF availability caused by the Chilean earthquake in 2010.
Posted by Rich Christianson
Have something to say? Share your thoughts with us in the comments below.