The Rising Influence of Rising Affluence

[DewDiligence]

PCL reports 3Q12 results:

http://www.plumcreek.com/Investors/nbspNewsandEvents/tabid/60/Default.aspx

“We had a good third quarter with earnings near the top of our guidance range,” said Rick Holley, Plum Creek’s president and chief executive officer. “Demand for wood products continues to improve and that has translated into improved financial performance for our timber and manufacturing businesses. Combined, these business segments have grown operating income by $19 million and adjusted EBITDA by $36 million during the first nine months of the year. We continue to be on track to grow our adjusted EBITDA by approximately $50 million this year.

…“We expect the results from our timber business to improve further in 2013 as the housing market and economy continue to strengthen,” continued Holley.

Not to mention the help PCL is getting from the mountain pine beetle (#msg-80952209, #msg-80680865, #msg-47898395).

Although quarterly revenue and EPS numbers are not especially meaningful for PCL, some investors think they are, so I’ll go ahead and mention them. 3Q12 EPS was $0.36 (vs $0.31 in 3Q11) and 3Q12 revenue was $354M, +21% YoY.

PCL has tax advantages relative to other REITs that are especially relevant now as US tax rates on dividends and capital gains are slated to increase in 2013 (barring an 11th-hour compromise); I commented on this in #msg-80978096.