Nevada County Picayune and Gurdon Times Newspaper Archive

Potlatch Announces Higher Earnings For Fist Quarter

Potlatch Corporation recently reported higher earnings for the first quarter of 1988, largely as a result of improved production at the Lewiston, Idaho, pulp mill and improved oriented strand board markets. However, markets for most of the company's pulp-based products continued to be very competitive.

Net earnings for the first quarter of 1998 were $10.7 million or $.37 per diluted common share. First quarter 1997 net earnings were $6.4 million or $.22 per diluted common share.

Net sales for the first quarter of 1998 were $402.5 million, compared with $399.4 million a year ago.

The Wood Products Group reported higher operating income of $13.5 million for the first quarter of 1998, compared to $11.2 million in 1997's first quarter.

"The oriented strand board market showed some improvement during the quarter with higher net sales realizations and shipments compared to the first quarter of 1997," John M. Richards, Potlatch chairman and chief executive officer, noted.

In early March 1997 the company halted production at its three mills in Minnesota for two weeks due to market conditions.

"The improvement for oriented strand board helped to offset lower lumber shipments and net sales realizations," Richards said.

The Minnesota Pulp and Paper Division reported first quarter 1998 operating income of $8.7 million, down from $10.3 million earned in the first quarter 1997.

"Markets for coated papers are somewhat softer than at this time last year," Richard said. Shipments for coated papers were down compared to the first quarter of 1997.

The other pulp-based businesses, which include the Pulp and Paperboard Group and the Consumer Products Division, reported operating income for the first quarter of 1998 of $15.6 million, versus $6.5 million earned in 1997's first quarter.

"Improved production at the Lewiston, Idaho, pulp mill, together with higher shipments and net sales realizations for paperboard were largely responsible for the positive results," Richards said. "However, markets were very competitive for pulp and paperboard in the first quarter, with pulp average net sales realizations down from the fourth quarter,"

The Consumer Products Division recorded slightly higher results, as higher shipments and a decrease in pulp costs more than offset a decline in net sales realizations for tissue products.

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