Improving production trends for lumber and structural panels are expected to result in greater demand and higher pricing for sawlogs as the housing recovery continues to advance. Sawlog prices during the second half of 2013 are expected to be higher than the prices for the second half of 2012 in all regions.
The company continues to expect to harvest between 17.5 and 18 million tons of timber this year. During the third quarter, harvests in the Northern Resources segment are expected to increase seasonally from their second quarter low. The Southern harvest is expected to increase from the second quarter’s level as log demand and prices gradually improve.
The company expects full-year Real Estate segment sales to be between $260 million and $290 million. Third quarter Real Estate segment sales are expected to be between $85 million and $95 million.Earnings for the Manufacturing segment are expected to remain very good on sustained demand and continued strong pricing for the company’s industrial plywood, MDF and lumber products. Reflecting all of these factors, the company expects 2013 income to be between $1.30 and $1.45 per share. The company expects to report third quarter income between $0.38 and $0.43 per share. “We continue to see positive trends from the recovering housing market and the general economy resulting in stronger demand for wood products,” continued Holley. “Mill owners are investing significant capital today in their facilities to improve efficiency and increase their future production capacity. Capital investment translates directly into a stronger customer base and increased demand for our logs in the future. This gives us great confidence in our ability to grow our earnings and cash flow from our core timber business as the recovery continues. "Disciplined capital allocation remains our top priority as we continue to evaluate opportunities for growth. We firmly believe that superior capital allocation makes the difference between good returns and exceptional returns over the long term,” concluded Holley.