Plum Creek Timber Company‘s fourth quarter profits rose to US$73m from US$56m a year ago, but its lumber manufacturing business saw earnings fall.
Overall profits were helped by a US$23m after-tax gain from the sale of assets. But the manufacturing business, which includes lumber and panel products, saw its profit dip to US$1m from US$6m in the fourth quarter of 2003.
Strong housing and industrial demand for lumber resulted in a 12% growth in timber prices compared to a year ago, with sales about 5% higher.
Plywood prices were 8% up as a result of strong industrial demand for structural panels, while MDF sales increased by 21%.
Plum Creek’s president and chief executive officer Rick Holley said the company’s timber resource segments grew operating profit sdespite a harvest reduction of 400,000 tons in 2004, compared to 2003.
