Plum Creek Timber second quarter bolstered by real estate
Plum Creek Timber benefited from good results from its real estate segment to post increases in its second-quarter sales and earnings.
The Seattle-based company reported earnings of $44 million in the second quarter, up from $35 million in the same quarter last year. Sales increased to $284 million, up from $258 million.
"Good results from our real estate segment offset weaker-than-anticipated results from our timber operations," said Rick Holley, Plum Creek's president and CEO. "Sawlog markets in the West and Northeast remained attractive during the second quarter, however, sawlog markets in the South continued to be challenging due to extremely dry weather and weak domestic demand.
"We manage the company with the goal of maximizing the long-term value of every acre we own," Holley continued. "During the second quarter, we reduced our sawlog harvest about 100,000 tons from planned levels in the South. We will bring this volume to the market, at improved prices, in the future."
The company's manufacturing segment reported $5 million of operating income for the second quarter, compared with the $10 million operating income reported for the second quarter of 2010.