The Rising Influence of Rising Affluence

[DewDiligence]

PCL’s 2015 outlook:

http://finance.yahoo.com/news/plum-creek-reports-results-fourth-210300267.html

The company expects U.S. residential construction activity to grow at a measured pace during 2015, resulting in approximately 1.1 million housing starts. [This is unchanged from prior guidance—see #msg-107588163.]

“…Although timber prices improved in each of our operating regions during 2014, we continue to believe the improvements in the U.S. South represent only the early stages of recovery in the region. Pricing is expected to strengthen as housing starts move above the 1.2 million starts level.”

Harvest volumes and harvest mix are expected to be similar to 2014 as the company plans to harvest between 19 and 20 million tons of timber in the upcoming year.

During 2015, the company expects Real Estate segment sales to be between $250 and $300 million. This represents ongoing Real Estate transactions as well as approximately $100 million of larger timberland dispositions. The company intends to allocate the capital generated from these timberland dispositions to the best long-term value outcome for shareholders [i.e. share buybacks or increased dividends].

2015 GAAP EPS, which means very little for PCL in light of the large non-cash depreciation expenses, is expected to be $1.05-1.30.