Potlatch Reports Improved Earnings

Spokane-based Potlatch Corp. reported higher earnings for the first quarter of 1998, largely as a result of improved production at the Lewiston, Idaho, pulp mill and improved oriented strand board markets. However, markets for most of the company’s pulp-based products continued to be highly competitive, the company reported.

Net earnings for the first quarter of 1998 were $10.7 million, or 37 cents per diluted common share. First quarter 1997 net earnings were $6.4 million, or 22 cents per diluted common share. Net sales for the first quarter of 1998 were $402.5 million, compared with $399.4 million a year ago.

The Wood Products Group reported operating income of $13.5 million for the first quarter of 1998, compared with $11.2 million a year ago. The Minnesota Pulp and Paper Division reported first-quarter 1998 operating income of $8.7 million, down from $10.3 million earned in the first of quarter 1997.

Other pulp-based divisions reported first-quarter operating income of $15.6 million, well above the $6.5 million earned a year ago.