Potlatch Corporation (NASDAQ:PCH) today reported financial results for the second quarter ended June 30, 2011.
“Industry conditions for our Resource and Wood Products segments remained challenging during the second quarter, but our Real Estate segment exceeded our expectations,” said Michael Covey, chairman, president and chief executive officer of Potlatch Corporation. “Harvest levels were lower in both the Northern and Southern regions due to unrelated factors. In our Southern region, sawlog prices drifted lower during the second quarter, causing us to defer some of our planned harvest in Arkansas. Log pricing was more favorable in our Northern region during the second quarter, however, a very late spring break-up delayed our harvesting operations by three to four weeks compared to normal, negatively impacting our planned harvest. Our regional diversity will allow us to shift harvest volumes in the second half of the year from the Southern to the Northern region to capture market opportunities. In our Wood Products business, the stronger prices for wood products we experienced during the first quarter did not continue into the second quarter, modestly impacting results. Our Real Estate segment had another solid quarter, completing 47 land sales transactions during the quarter,” concluded Mr. Covey.
Q2 2011 FINANCIAL SUMMARY
- Net earnings for the quarter were $8.4 million, or $0.21 per diluted common share, compared to $11.7 million, or $0.29 per diluted common share for Q2 2010.
- Cash provided by operating activities from continuing operations was $18.0 million for Q2 2011 compared to $20.4 million for Q2 2010.
Q2 2011 BUSINESS PERFORMANCEResource Operating income for the segment was $7.5 million, compared to $14.1 million in Q1 2011 and $15.0 million in Q2 2010. Seasonal weather-related factors in Idaho and an abundance of log supply in Arkansas were the primary drivers of the weaker Q2 performance. In addition, the Q2 2010 results include sales volumes and prices from our Wisconsin and Arkansas properties that were sold in the second half of 2010. The second quarter is typically the seasonally weakest quarter.