Plum Creek Timber Company, Inc. today announced first quarter earnings of $30 million on revenues of $317 million. Earnings for the first quarter of 2013 were $56 million on revenues of $340 million.
Adjusted EBITDA for the first quarter of 2014 was $93 million and was $128 million for the same period of 2013.
Plum Creek's Northern Resources segment reported operating profit of $16 million during the first quarter, a $5 million improvement over the first quarter of 2013. Sawlog prices increased $9 per ton, more than 11 percent, compared to the first quarter of 2013 driven by strong demand from both export markets and domestic lumber mills. Pulpwood markets in the Northeast and the Lake States remained attractive with stable pricing over the past year. The company's total Northern segment harvest volume was similar to the first quarter 2013’s harvest level.
Plum Creek's operating profit in the Southern Resources segment was $31 million, up $7 million from the $24 million reported for the first quarter of 2013 due to increased harvest volumes and higher log prices. Plum Creek's recently acquired lands in the South drove a 16 percent increase in harvest volumes for both sawlogs and pulpwood. Average sawlog prices have increased more than $1 per ton, or approximately 6 percent over the past year. Pulpwood prices have also increased and are up approximately 7 percent compared to the first quarter of 2013.
Plum Creek's Manufacturing segment reported operating income of $9 million, slightly lower than the $10 million reported in the first quarter of 2013. The company's plywood sales volumes were 17 percent lower compared to the first quarter of 2013. Severe weather limited log deliveries, reduced production levels at the company's mills, and hampered shipments to customers. Lumber sales volumes increased 24 percent versus the prior year due to the re-start of production at the company’s Evergreen sawmill in April 2013. Lumber and plywood prices were similar to the first quarter of 2013, while MDF prices increased 6 percent over the past year.