Nevada County Picayune and Gurdon Times Newspaper Archive

Potlatch 1995 Fourth Quarter Earnings Up From Year Ago

Potlatch Corporation has announced that its first quarter earnings will be significantly affected by severe cold weather in its operating areas and by heavy flooding in Idaho. Potlatch has timberlands and operating facilities that manufacture wood products and paper products in Arkansas, Idaho and Minnesota.

"In January and early February, the sub-zero weather affected virtually all our manufacturing facilities," John M. Richards, Potlatch's chairman and chief executive officer, said.

"Subsequently, a major warming trend accompanied by heavy rains has caused severe flooding in Idaho, which has curtailed or shut down operations at most of our facilities in the state," Richards said. Because of large amounts of mud and debris in the Clearwater River, the company's pulp mill in Lewiston has been unable to obtain clean water and has been shut down since late last week, Richards said. Without pulp, production has been shut down at the company's paperboard and tissue mills in Lewiston as well.

"We are also unable to get supplies to the Lewiston mill, and we haven't been able to ship product," said Ricahrds. "Barge traffic is not operating on the Columbia River system and our major rail and most of our highway routes have been closed by flooding and landslides."

Richards also said that there has been flooding at the company's St. Maries lumber and plywood complex in Idaho, and its Jaype plywood mill was inaccessible by road or rail for several days due to landslides.

Weather in the Idaho region has improved. However, Richards said it will take a few days for operations to return to normal.

Richards said the company is not able to quantify the effect of these events on first quarter earnings, but he said it would be significant.