Potlatch (PCH) owns about 1.6 million acres of timberlands in Arkansas, Idaho, Minnesota, and Wisconsin. Its three business segments are resource (managing the timberlands), real estate (the sale of selected non-core acres and real estate development), and wood products (lumber, plywood, and particleboard.) 2009 hasn’t been a great year for any of those segments. During the second quarter, for example, in the resource segment timber harvest levels were down as demand from the construction industry remained depressed. The real estate segment sold just 628 acres of higher, better use land for development. And the wood products segment posted a $3 million operating loss. On the plus side the company put aside $100 million to pay off its credit-sensitive debentures and that removed a cap on its bank credit line. And even after paying dividends Potlach was cash flow positive for the quarter. The company reports earnings on October 27. The yield as of October 14 was 7.2%.
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