Nevada County Picayune and Gurdon Times Newspaper Archive

Earnings Are Up

Potlatch Corporation on April 10 reported higher earnings for the first quarter of 1997 despite lower realizations for all of the company's pulp-based products, as well as oriented strand board, compared to the first quarter of 1996.

Results for the first quarter of 1996 were adversely affected by flood-related problems in Idaho, according to a news release from Potlatch.

Net earnings for the first quarter of 1997 were $6.4 million, or $.22 per common share. First quarter 1996 net earnings were $5 million, or $.17 per common share. Net sales for the first quarter of 1997 were $399.4 million, compared with $388.6 milllion a year ago.

The Wood Products group reported operating income of $11.2 million for the first quarter of 1997, a slight improvement from 1996's $11 million.

John M. Richards, Potlatch chairman and chief executive officer, noted that demand for the company's lumber products was good during the quarter and resulted in higher shipments and net sales realizations. "However, markets for panel products were poor," said Richards.

"For oriented strand board, markets deteriorated to the point that it was necessary to halt production at the company's three mills in Minnesota for two weeks in early March." Net sales realizations for oriented strand board declined by approximately one-third compared to the first quarter of 1996.

The Minnesota Pulp and Paper Division reported first quarter 1997 operating income of $10l.3 million, down from $12 million earned in the first quarter 1996.

"Good operating results were largely offset by lower net sales realizations," Richards said. "Normal startup costs associated with the new pulp mill fiberline also contributed to the lower earnings."

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 1997 of $6.5 million, versus $4.3 million in 1996's first quarter, when flooding occurred in Idaho.

"Lower net sales realizations for pulp and paperboard were largely offset by improved results in our Consumer Products Division, which benefited from lower pulp costs," Richards said.

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