Potlatch 1Q Profit More Than Doubles

SPOKANE, Wash. (AP) — Timber real estate investment trust Potlatch Corp. on Tuesday said its first-quarter profit more than doubled, as the sale of timberland offset slumping demand for its wood products amid the housing crisis.

Its results widely beat Wall Street estimates, and its shares jumped in afternoon trading.

Net income surged to $24.8 million, or 62 cents per share, from $10.3 million, or 26 cents per share, in the same period last year. Earnings from continuing operations — which excludes results from businesses that have been, or are in the process of being sold — totaled $28.8 million, or 72 cents per share.

Revenue rose 15 percent to $129.6 million from $112.6 million in the year-ago period.

Analysts surveyed by Thomson Reuters expected earnings of 58 cents per share on revenue of $112 million.

Operating income for Potlatch's real estate business more than doubled to $41.5 million from $16.7 million in last year's first quarter.

Potlatch said it sold about 24,500 acres of timberland in Arkansas in January for $43.3 million. Other land sales during the quarter totaled about 5,500 acres at an average price of about $880 per acre.