Nevada County Picayune and Gurdon Times Newspaper Archive

Net Earnings Reported To Be Up For Third Quarter

Potlatch Corporation reported significantly improved results for the third quarter of 1995, as the company's pulp-based businesses continued to benefit from positive market conditions for their products. Net earnings for the third quarter were $31.7 million, versus $10.7 million for 1994's third quarter. Earnings per commons share were $1.09, compared with $.37 per share in the third quarter of 1994.

Net sales were $411.2 million for the quarter, up from 1994's $373.3 milion.

Net earnings for the first nine months of 1995 were $79.2 million, or $2.71 per common share. Net earnings for the first nine months of 1994 were $28.3 mililon, or $.97 per common share, before a one-time, pre-tax charge of $10 million for early retirement programs in Idaho. Including the charge, 1994 nine months earnings were $22.1 million or $.76 per common share. Net sales for the first nine months of 1995 were $1.2 billion, up 11 percent from $1.08 billion in 1994.

The Wood Products Group reported earnings of $30.8 million for the third quarter of 1995, down from $36.4 million earned in 1994's third quarter. "Lower net sales realizations for most of the company's lumber and panel products were largely responsible for the decline," said John M. Richards, Potlatch chairman and chief executive officer. "Wood products markets were soft as the quarter began but improved throughout the quarter."

The Northwest Paper Division earned $13.5 million during the quarter, up from $8.5 million in the third quarter of 1994. Strong operating results at the division's two coated paper facilities led to increased production, which positively affected earnings. "The improvement also resulted from higher net sales realizations for the division's coated papers, which more than offset higher pulp costs," said Richards.

The other pulp-based businesses, which include the Pulp and Paperboard Group and the Consumer Products Division, reported third quarter 1995 earnings of $23.1 million, versus a loss of $8.8 million a year ago. Net sales realizations were higher for paperboard, tissue and especially pulp, compared with the third quarter of 1994.

The company's pulp and paperboard mill in Arkansas operated very well during the quarter. However, the annual maintenance shutdown taken in September at the company's pulp and paperboard mill in Idaho was longer than anticipated. During the shutdown some additional structural problems with the pulp mill washers were discovered. "This will result in about 10,000 to 12,000 tons of reduced production during the fourth quarter while repairs are being made," said Richards. "We ar enow finalizing plans to replace the washers."

Commenting on current conditions, Richards said, "We see weaknesses in some markets and strengths in others. But overall we expect reasonably good conditions in our markets to continue through the rest of the year."

Potlatch is a diversified forest products company with timberlands in Idaho, Arkansas and Minnesota.