Plum Creek Reports Results for Fourth Quarter and Full Year 2010

January 31, 2011 by timbercommunity

Plum Creek Timber Company today announced fourth quarter earnings of $59 million, or $0.37 per diluted share, on revenues of $356 million according to a pressrelease from the company. Earnings for the fourth quarter of 2009 were $28 million, or $0.17 per diluted share, on revenues of $258 million. Earnings for the fourth quarter of 2010 include a $13 million, or $0.08 per diluted share, loss on the early extinguishment of debt. "We believe recovery in our businesses will continue in 2011,"  said Rick Holley, president and chief executive officer. He also said "The supply chain remains tight and lumber prices have been firming over the past four months."

Plum Creek Timber are starting to see this reflected in West Coast log prices where prices began climbing in December and have continued to improve in January. However, sawlog markets throughout the nation are still below what we consider attractive levels. We are approaching 2011 conservatively and expect our harvest volume and mix will be similar to that of our 2010 harvest. In our Real Estate segment, we will continue to focus on those markets where prices have been attractive, holding our most valuable lands for the future."

"Each of our businesses performed well in 2010 and are positioned to benefit further from an improving economy in 2011," continued Rick Holley, president and chief executive officer. "Profitability in our timber resource segments increased 54 percent despite a slightly lower harvest volume in 2010.

Earnings for the full year of 2010 were $213 million, or $1.31 per diluted share, on revenues of $1.19 billion. Results for the full year of 2010 include an $11 million, or $0.07 per diluted share, after-tax gain on the first-quarter sale of certain natural gas assets. As a result, income from continuing operations for 2010 was $202 million, or $1.24 per diluted share. Results for 2010 include the loss from the early retirement of debt mentioned above.