Potlatch Corp. (PCH) ported that its first-quarter net income increased to $15.49 million or $0.38 per share, from $5.05 million or $0.13 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
Operating income was $26.61 million, up from $12.52 million last year.
Operating income for the Resource segment in the latest-quarter was $15.5 million, compared to $8.7 million last year. The primary reason for variances was increased harvest volumes in both its Northern and Southern regions, combined with higher prices in Idaho.
Revenues for the quarter rose to $139.25 million from $112.38 million in the prior year quarter. Eight analysts had consensus revenue estimate of $134.69 million for the quarter.
The company said it expects new housing starts to continue to climb and domestic home repair and remodel activities to increase as the economy continues to advance. The company said it is continuing to see the improvement in lumber prices work its way into higher sawlog prices, which will contribute greatly to its Resource segment's income for the year. At this time, the company still expects its 2013 harvest to be approximately 3.8 million tons. The company believes sawlog prices will be significantly higher in the years ahead as demand improves, so it is continuing with its harvest deferral strategy of approximately 800,000 tons per year.
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