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Potlatch Q1 Profit Plunges Amid Lower Lumber Prices

Potlatch Corp. (PCH) Wednesday said first-quarter net income plunged to $5.7 million, or $0.14 per share from $20.35 million or $0.50 per share in the previous year.

On average, eight analysts polled by Thomson Reuters expected earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues slipped to $134.1 million from $139.6 million in the first quarter of 2014. Analysts expected revenues of $131.74 million.

The company is a Real Estate Investment Trust with about 1.6 million acres of timberland in Alabama, Arkansas, Idaho, Minnesota and Mississippi.

Mike Covey, chairman and CEO, said, "We are surprised and disappointed that lumber prices have fallen since the start of the year. We believe that the U.S. housing recovery will continue and that building activity will increase to at least 1.1 million starts this year as the weather improves. We expect lumber prices will recover and that we will post stronger results in the second half of the year."

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