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Plum Creek Timber -- >>> Plum Creek Timber profit nearly doubles on margins



April 29, 2013

By Debbie Cai



http://www.marketwatch.com/story/plum-creek-timber-profit-nearly-doubles-on-margins-2013-04-29?siteid=bigcharts&dist=bigcharts



Plum Creek Timber Co.'s /quotes/zigman/206602/quotes/nls/pcl PCL +1.64% first-quarter earnings almost doubled as the real-estate investment trust posted wider margins.

For the current quarter, Plum Creek predicts per-share earnings of 20 cents to 25 cents, below the 34 cents projected by analysts polled by Thomson Reuters. The company said it expects higher demand for lumber and structural panels to keep pressure on sawlog prices in the foreseeable future.

Plum Creek is one of the largest private timberland owners in the U.S., holding about 6.4 million acres. The company is expected to benefit from a gradual housing recovery, along with higher demand from Asian markets and the rise of biomass for alternative energy. It has reported strong top- and bottom-line growth in recent quarters.

Plum Creek reported a profit of $56 million, or 35 cents a share, up from $29 million, or 18 cents a share, a year earlier. In January, the company estimated per-share earnings between 28 cents and 33 cents.

Revenue improved 0.9% to $340 million. Analysts polled by Thomson Reuters had projected revenue of $335 million.

Operating margin widened to 22.9% from 14.8% as costs and expenses declined.

The timber segment, which contributes the largest share of revenue, grew 9.7%. At the company's real-estate business, revenue was 22% lower, while the manufacturing segment's revenue increased 13%.

Shares of the company, which backed its full-year per-share income view, closed at $53.30 and were unchanged after hours. Through Monday's close, the stock is up 27% over the past 12 months.

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