Potlatch reported last week that poor market conditions for most of its products and substantially higher interest expense resulted in a loss for the third quarter of 2001.
The company reported a net loss of $6.6 million, or 23 cents per diluted common share, compared to a loss of $10.5 million for the same period in 2000.
The 2000 results included an after-tax charge totaling $11.3 million for costs related to the closure of a plywood mill in Idaho. Potlatch reported net sales for the third quarter of 2001 were $456.6 million, slightly higher than the $452 million recorded for the same period a year ago.
"For the first nine months of 2001 the company incurred a net loss totaling $47.7 million, or $1.69 per diluted common share," Potlatch reported. The net loss for the first nine months of 2000 was $17.5 million, which included charges for a salaried workforce reduction and the plywood mill closure. Before those charges, Potlatch reported the net earnings for the first nine months of 2000 were $9.6 million.
Net sales for the first nine months of 2001 were $1.36 billion, compared with $1.39 billion for 2000's first nine months.
The resource segment reported an operating income of $17.9 million for the third quarter of 2001, down from the $23.5 million earned in the third quarter of 2000. Potlatch reported the results reflect lower net sales for log sales to external customers in Idaho and internal customers in Arkansas combined with higher costs in both those states.
Operating income for the wood products segment was slightly above break-even for the third quarter of 2001, compared to a loss of $29 million a year ago.
The printing papers segment recorded a third quarter operating loss of $7 million. A year ago the printing papers segment recorded an income of $2.3 million.
"Lower net sales realizations for printing papers and pulp adversely affected results for the segment," L. Pendleton Siegel, Potlatch chairman and chief executive officer, said in a news release. "Unfavorable economic conditions and foreign imports have had a negative effect on both price and product mix for printing papers."
The company reported net sales for printing papers were down 12 percent and pulp was down 44 percent compared to a year ago. Potlatch stated shipments for printing papers and pulp increased to partially offset the negative effects of lower net sales.
The pulp and paper segment reported operating income for the third quarter of $10 million compared to $6.9 million a year ago.
"Higher interest expense during the current quarter was due largely to the greater amount of debt the company currently has outstanding compared to last year and to a reduction in the amount of interest capitalized for major construction projects," Potlatch reported.
Work on land in Brainerd just past Franklin School on Gillis Avenue is in preparation for an automobile repair shop.
LASHO, the Lakes Area Safety and Health Organization, has scheduled a 10 a.m.medical forum Nov. 15 at Bonanza that will look at return to work issues. A professional panel will be on hand representing general medicine, chiropractic, orthopedics and occupational/physical therapy.
Cre8ive Gallery, Cindy and Gary Jackson-owners, closed the store's Highway 371 North location.
But the Jacksons are keeping their Country Corner Mall store in Pequot Lakes. The gallery originally expanded to include Pequot Lakes after opening north of Baxter when the business grew from a home-based effort.
In addition to the Pequot Lakes store, Cindy Jackson reported her hand-painted originals are features in Santa Monica, Calif. in a gallery called Raw Style and also in Minneapolis at a shop called The Find.
The custom work for other galleries and mural work in Minneapolis is keeping Cindy Jackson busy.
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