Potlach reports strong year, lower 4Q earnings

Higher lumber prices led to a strong year for the Potlach Corp., which reported 2017 revenues of nearly $679 million.

But charges related to federal tax reform and a pending merger to Deltic Timber Corp. led to lower fourth-quarter income for the Spokane-based company, officials said.

Potlatch reported fourth-quarter income of $11.6 million, or 28 cents per share. The results, released late Monday, compared to 2016 fourth-quarter income of $14.4 million, or 35 cents per share.

The company’s net income for 2017 was $86.5 million, or $2.10 per share, compared to 2016 net income of $10.9 million, or 27 cents per share.

Mike Covey, Potlatch chairman and CEO, said the merger between Potlatch and Arkansas-based Deltic is expected to close by the end of February.

Lumber prices should remain strong in 2018, based on high demand from approximately 1.3 million housing starts, he said.