Potlatch (PCH) Misses Q3 EPS by 2c; to Acquire Certain Land Assets from Resource Management

Potlatch Corporation (NASDAQ: PCH) reported Q3 EPS of $0.81, $0.02 worse than the analyst estimate of $0.83. Revenue for the quarter came in at $177.2 million versus the consensus estimate of $186 million.

The company also signed a purchase agreement to acquire 201,000 acres of timberlands in Alabama and Mississippi from affiliates of Resource Management Service, LLC for $384 million. The transaction is expected to close late in the fourth quarter of 2014 and is subject to the satisfaction of customary closing conditions.

"We are pleased to add these very productive timberlands to our southern portfolio," said Michael Covey, chairman and chief executive officer of Potlatch Corporation. "The timberlands have been managed intensively and are well stocked. This transaction will expand our southern ownership by almost 50% into two new states contiguous to our existing Arkansas holdings and will increase our total acreage under management to nearly 1.6 million acres," concluded Mr. Covey.

Upon closing, the acquired timberlands are expected to be immediately accretive to funds available for distribution per share, which would support the company's ability to grow its dividend over time. The company plans to finance the acquisition with new long-term debt and cash.

For earnings history and earnings-related data on Potlatch Corporation (PCH) click here.

You May Also Be Interested In

• Philip Morris (PM) beats Q1 earnings, revenue estimates; issues upbeat guidance
• SunPower (SPWR) determined prior financial statements should no longer be relied upon
• FTC Moves to Block Tapestry’s (TPR) Acquisition of Capri (CPRI)