SPOKANE, WA – Potlatch Corp. reported
that net earnings from continuing operations for the first quarter of
2010 were $1.2 million compared to $24.8 million for Q1 2009.
"The year is off to a good start and we are seeing positive developments in both our resource and wood products segments," said Michael Covey, chairman, president and CEO of Potlatch. "Our wood products segment had quarterly operating income for the first time since the third quarter of 2008, as lumber prices and sales volumes both increased more than 25 percent in the first quarter of 2010 over the same period in 2009.
“In our resource segment, the volume of saw logs sold increased over the first quarter of last year," Covey added. "Furthermore, the price increases we are seeing in our Wood Products business have begun to roll over into log prices, so we expect continued improvement from our resource business.
"Looking ahead, we are optimistic based on our results for the first quarter and what we have experienced to-date in the second quarter. Demand for logs is improving in all regions, and prices look even better for the second quarter than they were in the first quarter,” Covey said. “We expect our 2010 harvest to be approximately 4.0 to 4.4 million tons, above the 3.8 million tons we harvested in 2009. If the current improvements continue, our 2010 harvest may be at the upper end of the range, or potentially even higher. In our wood products business, we expect the cost-cutting measures made in 2009, combined with the strong price improvements and increased demand we have experienced in 2010, to continue to result in positive earnings in the second quarter.”
Read Potlatch Corp.'s press release.
"The year is off to a good start and we are seeing positive developments in both our resource and wood products segments," said Michael Covey, chairman, president and CEO of Potlatch. "Our wood products segment had quarterly operating income for the first time since the third quarter of 2008, as lumber prices and sales volumes both increased more than 25 percent in the first quarter of 2010 over the same period in 2009.
“In our resource segment, the volume of saw logs sold increased over the first quarter of last year," Covey added. "Furthermore, the price increases we are seeing in our Wood Products business have begun to roll over into log prices, so we expect continued improvement from our resource business.
"Looking ahead, we are optimistic based on our results for the first quarter and what we have experienced to-date in the second quarter. Demand for logs is improving in all regions, and prices look even better for the second quarter than they were in the first quarter,” Covey said. “We expect our 2010 harvest to be approximately 4.0 to 4.4 million tons, above the 3.8 million tons we harvested in 2009. If the current improvements continue, our 2010 harvest may be at the upper end of the range, or potentially even higher. In our wood products business, we expect the cost-cutting measures made in 2009, combined with the strong price improvements and increased demand we have experienced in 2010, to continue to result in positive earnings in the second quarter.”
Read Potlatch Corp.'s press release.
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