Potlatch announces earnings drop
Spokane-based real estate investment trust Potlatch Corp. reported earnings of $11.2 million, or 28 cents per share, for the quarter ending Dec. 31.
Earnings were down about 76 percent from the same time in 2006 because of “disappointing” wood products sales and lack of a one-time windfall, according to a news release. Last year’s numbers included $39.3 million Potlatch was awarded from the settlement of a softwood-lumber trade dispute between the U.S. and Canada.
Poor lumber prices and market-related downtime at two company pine mills contributed to a larger operating loss in its wood-products segment – which continues to be hit by a weakened housing market – but real estate and pulp and paperboard continued to be strong areas, according to the release.
Potlatch, which owns 1.7 million acres of forest in four states, sold 16,175 acres, making more than $24 million. It plans to sell 18,000 to 22,000 acres next year.
•Billionaire investor Carl Icahn has amassed a 9.5 percent stake in Oregon railcar manufacturer Greenbrier Cos., according to a filing Monday with the Securities and Exchange Commission.
Icahn reported owning 1.5 million shares of the Lake Oswego, Ore.-based company, whose shares climbed more than 20 percent after the filing.
Icahn acquired the stake through ARI Longtrain Inc., whose sole stockholder is American Railcar Industries Inc., which manufactures and services railcars. Icahn beneficially owns 53.7 percent of the common stock of American Railcar.
According to the filing, Icahn feels the Greenbrier shares are undervalued and is interested in discussing with management a possible business combination between American Railcar and Greenbrier.
•Wal-Mart Stores Inc., the nation’s largest grocery chain, is adopting new global safety standards for its private label and other foods at a time when analysts say consumers are more concerned than ever about food safety.
Bentonville, Ark.-based Wal-Mart said Monday it will require audits using global safety standards at thousands of factories worldwide that produce its house brands, including Sam’s Choice, and other items that don’t carry major brand names.
Wal-Mart said in a statement that it is the first national grocery chain in the United States to adopt the Global Food Safety Initiative standards for its private-label products.
Analysts said the move could give Wal-Mart a pro-safety image boost that would help its grocery business, already one of its strongest sales areas along with home electronics, pharmacy, and the health and beauty aisles.