Plum Creek Timber Co.'s (PCL) fourth-quarter profit more than doubled and its real estate revenue surged, even as a charge from retiring debt hurt the bottom line.
The lumber provider projected earnings from continuing operations of 20 cents to 25 cents a share for the current quarter and $1.25 to $1.45 a share for the year. Wall Street had estimated 29 cents and $1.39, respectively.
Plum Creek, which owns about seven million acres of timberlands, has seen prices for its products improve during the past year, but the slump in the housing market has weighed on results. The company recently refinanced $463 million in debt, incurring a $13 million hit to its fourth-quarter earnings.
For the latest quarter, Plum Creek reported a profit of $59 million, or 37 cents a share, up from $28 million, or 17 cents a share, a year earlier. The latest results included 8 cents for the debt extinguishment, compared with 2 cents a year earlier. In October, the company projected 40 cents to 47 cents, well short of estimates at the time.
Revenue rose 38% to $356 million, above the $352 million forecast of analysts polled by Thomson Reuters.
Timber revenue rose 6.9% to $140 million, while real estate revenue more than doubled to $155 million.
Plum Creek's shares were unchanged at $41.87 in after-hours trading. Shares have risen by 12% over the past year.
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