Plum Creek posts flat revenues

by Dagmark Garcia | Monday, Jan 30, 2012 | 447 views

Plum creek timber has declared it s fourth quarter results. The company has stated that the numbers have been flat as compared to the previous year. The company posted a profit of $61 million, or 38 cents a share, up from $59 million, or 37 cents a share, a year earlier. The previous year’s results included 8 cents for debt extinguishment. In October, the company predicted earnings from continuing operations of 37 cents to 42 cents a share. Timber revenue was up 7.9%, while real-estate revenue slumped 40%. Manufacturing revenue was up 14%. The company at the moment is the largest publicly held timber REIT.

Depressed real estate markets have continued to the flat revenues for the company. The company hopes change in fortunes of real estate over the next three years could benefit the company in the long run. The company, which owns about 6.6 million acres in timber-producing areas of the U.S., predicted 2012 earnings of $1 to $1.25 a share. Analysts across the board had predicted an EPS of $ 1.40. Company’s Other Segment includes its natural resource businesses that focus on opportunities relating to mineral extraction, natural gas production and communication and transportation rights of way resulting from its property ownership.

Shares of Plum Creek Timber traded down 3.04% during mid-day trading on Tuesday, hitting $38.86. Plum Creek Timber has a 52 week low of $33.02 and a 52 week high of $44.28. The stock’s 50-day moving average is $37.5 and its 200-day moving average is $36.75. The company has a market cap of $6.267 billion and a P/E ratio of 34.26. One can avoid the stock at current market levels. Due to pressure on the real estate markets, the company could face pressure on its margins in the near term.


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