Potlatch Earnings Down

Operating problems at a new pulp mill in Minnesota cut into Potlatch Corp.’s first quarter earnings.

Net earnings were $2.4 million, or 8 cents a share, compared with $5.2 million for the same period last year, before a one-time time charge.

Spokane-based Potlatch took a $4.6 million charge in the first quarter of 1999, reflecting expenses related to terminating efforts to start a timber real estate investment trust.

Difficulties in the company’s paper and pulp segments led to lower earnings, officials said.

Start-up problems at the new pulp mill, which have since been resolved, led to higher-than-expected costs, said Penn Siegel, Potlatch chairman and CEO.