Plum Creek Timber reported second-quarter earnings of $55 million, up 20% from $46 million in the year-ago period. Revenues totaled $356 million, up 17% from revenues of $303 million in the second quarter of 2013.
Earnings for the first six months of 2014 were $85 million, down 17% from $102 million in the same period in 2013. Revenues for the first six months were $673 million, up 5% from $643 million.
“Our second-quarter results were much as we anticipated despite lower-than-planned harvest volumes in the South,” said Rick Holley, Plum Creek’s CEO. “So far this year, the operating income and cash flow from our timber resources segments are up nearly 30% due to improving log prices and the additional harvest from the lands we acquired in December.
“Our Real Estate segment continues to perform as expected and our Manufacturing segment is on track to deliver a strong performance in 2014. Our Energy and Natural Resources segment results have grown too, as the assets we acquired over the past year are providing attractive cash-on-cash returns for our shareholders.”
The company has revised its earnings outlook for 2014 to reflect lower harvest volumes, expectations for slower log price growth and the anticipated composition of real estate transactions in the second half of the year. The company now expects 2014 income to be between $1.05 and $1.25 per share, and third quarter income between $0.27 and $0.32 per share.