Plum Creek Timber Co endured a difficult fourth quarter as it closed a poor 2008, its latest results have shown.
In the three months to December 31, 2008, the company saw operating income down from US$155m to US$105m year-on-year and net income down from US$118m to US$95m, with revenue from timber down US$28m to US$165m compared to the same period in 2007,
For 2008 as a whole, operating income was down from US$424m to US$328m and net income down from US$282m to US$233m compared to 2007, with timber revenues declining from US$782m to US$752m.
Weak sawlog markets saw the company reduce harvests by 11% to its lowest recorded level. Average sawlog prices were down 10% across its operations.
Despite this, Plum Creek said it intended to continue to focus on “long-term growth opportunities”.
“Our operating plans for 2009 take into consideration the difficult market conditions we are likely to face for most of this year, as well as our positive long-term view of timber and rural land markets,” said Rick Holley, president and CEO.
