Potlatch 3Q Profit Boosted By Timber Deed Sale

SPOKANE, Wash. (AP) — Timber real estate investment trust Potlatch Corp. said Monday its third-quarter profit rose 82 percent, boosted by the proceeds from the sale of a timber deed.

Potlatch earned $45.8 million, or $1.15 per share, compared with $25.3 million, or 63 cents per share, for the same quarter last year. During the latest quarter, the company closed on the sale of a timber deed that resulted in $48.7 million in proceeds that boosted the results at its resource segment.

Revenue rose 25 percent to $163.7 million from $130.8 million.

Analysts polled by Thomson Reuters expected a profit of $1.11 per share on $150.4 million in revenue.

"The performance of our wood products business continued to improve as the division produced positive cash flow during the quarter," said Chairman, President and CEO Michael Covey, in a statement. "Finally, we are optimistic about our resource business because log prices appear to have bottomed, so, as housing continues to improve, so should log prices."

Separately, the company also announced a planned offering of $150 million worth of senior notes due 2019. Part of the proceeds will be used to repay about $73 million outstanding on the company's credit facility and the rest will be used for general corporate needs.

The notes will be privately placed with institutional and certain foreign buyers only.

Potlatch shares rose 19 cents to $28.50 in aftermarket trading when the earnings report was released, after falling 16 cents to close at $28.31 in the regular session.