US-based Plum Creek Timber’s manufacturing division has seen an improved third-quarter result thanks to increased timber prices.
The division reported US$7m operating profits, compared with a US$1m operating loss for the third quarter of 2009.
Profitability in each of the division’s product lines improved from 2009’s third quarter, with lumber prices increasing an average of 9% while plywood and MDF prices increased approximately 7% and 6% respectively.
Sales volumes for plywood and MDF increased 7% and 14% respectively, while lumber sales volumes were 28% lower during 2010 as a result of the permanent closure of two lumber mills in 2009.
Plum Creek also expects the manufacturing division to remain profitable at slightly above breakeven performance during the seasonally weak fourth quarter
Group earnings for the first nine months of 2010 were US$154m on sales of US$834m.
