Potlatch reported slightly lower earnings for the second quarter of 2000, compared to 1999.
Improved earnings by the company's pulp-based products were more than offset by lower results for the company's wood products, Potlatch stated in a news release.
Net earnings for the second quarter of 2000 were $8.5 million or 30 cents per diluted common share.
Those figures came before the $26 million pre-tax charge to cover costs associated with the recent company-wide reduction in its salaried workforce.
The company anticipates annual pre-tax savings of $21 million as a result of the job cuts.
Net earning figures changed when the pre-tax charge for the job cuts was included. Including the charge, the company had a net loss of $7.4 million or 25 cents per diluted common share.
Net earnings for the first half of 2000 were $10.9 million or 38 cents per diluted common share before the job cuts charges. After the charges, the company reported a net loss of $4.9 million or 17 cents per diluted common share.
Net sales for the first half of 2000 were $867.4 million, compared with $829.5 million for 1999's first half.
The printing papers segment recorded second quarter operating income of $3.7 million, compared to a loss of $2.4 million a year ago. L. Pendleton Siegel, Potlatch chairman and chief executive officer, said sales of market pulp and an improvement in net sales for printing papers were largely responsible for the improved results.
The company's printing paper manufacturing facilities in Minnesota operated at improved levels compared to the first quarter of 2000.
The pulp and paper segment reported a second quarter operating income of $6.5 million, compared to a $2.2 million loss at this time last year.
"Higher net sales realizations for consumer tissue, paperboard and pulp were primarily responsible for the favorable comparison," Siegel stated in a news release.
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