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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.

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Another executive exits ProBuild

Jim Cavanaugh, president of operations at ProBuild and one of the company’s veteran executives, is leaving the company at the end of August, Home Channel News has learned. A spokeswoman for ProBuild confirmed the news and issued the following statement: 

“We thank [Cavanaugh] for his many contributions to our company and wish him well in his future endeavors. Jim will continue to work closely with our operations team until Aug. 31, 2011, in order to ensure a smooth transition.”

Cavanaugh is the second high-level departure from the nation’s largest LBM chain in two weeks. On July 11 the Denver-based company circulated a memo to employees announcing that Bill Myrick, president and CEO, was no longer with the company. He has held the top job for less than one year after serving as chief operating officer for two years. 

Cavanaugh served as president of Hope Lumber for 20 years, growing it to a 50-unit chain in the south central U.S. that largely served production builders. Hope Lumber was purchased by Lanoga Corp., which then joined ProBuild in 2006. Parent company Devonshire Investors, part of Fidelity Investments, put Lanoga together with The Strober Organization, forming the largest LBM chain in the nation.

In addition to his most recent title, Cavanaugh essentially took over the COO’s job when Myrick was promoted to CEO in September 2010. All regional presidents reported to Cavanaugh, who was then executive VP operations. 

Cavanaugh has also held positions with Georgia-Pacific and Boise Cascade in his 30-year career.

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Sales dip slightly at USG

USG Corp., a leading building products company, today reported net sales of $761 million for its second quarter of 2011, a 1.04% decrease over sales of $769 million a year ago.

The company posted an operating loss of $21 million and a net loss of $70 million, compared with $25 million and $74 million, respectively, in the second quarter of 2010.

U.S. Gypsum wallboard shipments totaled 986 MMSF in the second quarter of 2011 versus 1,070 MMSF a year ago. Revenues for the U.S. Gypsum division were $322 million in the second quarter, a 4.2% decrease from $336 million a year ago. L&W Supply, the distribution arm of USG, recorded an operating loss of $14 million compared with $22 million during the same period last year.

“We are continuing to pursue our near-term and long-term strategic priorities during the protracted recession in our domestic markets,” said James Metcalf, president and CEO. “By strengthening our core businesses, diversifying the sources of our earnings and aggressively leveraging our innovation leadership to differentiate USG’s products from the competition, we are confident that we can successfully navigate this recession and capitalize on a recovery.”