Potlatch Corp.

Potlatch Corp.
Public
Traded as NASDAQ: PCH
S&P 400 Component
Industry Forestry
Real estate
Founded 1903 as Potlach Lumber
Headquarters Spokane, WA
Key people
 Michael J.Covey chair, ceo, pres
Products Lumber, Plywood, Minerals
Revenue Increase$476.17 million 2009[1]
Increase$77.33 million 2009
Total assets $806.135 mil sept 2010Decrease2%yoy[2]
Number of employees
 920 September 2010
Subsidiaries Potlatch TRS sells non-core real estate
Website www.potlatchcorp.com

PotlatchDeltic Corporation[3] (originally Potlatch Corp) is an American diversified forest products company based in Spokane, Washington.

It manufactures and sells lumber, panels and particleboard and receives revenue from other assets such as mineral rights and the leasing of land as well as the sale of land considered expendable. In February 2018. Potlatch acquired Deltic Timber Corp., a smaller Arkansas-based timber company. Following the merger, the company was renamed PotlatchDeltic Corporation.[4][5]

History

The Potlatch Lumber Company was incorporated in 1903. It planned a lumber mill on the Palouse River and began construction in 1905, completed in 1906. The mill operated until 1981. The company town of Potlatch, Idaho was built to serve the mill. Over 200 buildings were designed by architect C. Ferris White for the firm. The town soon became the second biggest town in Latah County, Idaho, and the firm was the biggest taxpayer in Idaho for some years.[6]:8–9

The Commercial Historic District (Potlatch, Idaho), which includes the main administrative building of the company, was listed on the National Register of Historic Places in 1986.[7]

In 1985, Canadian businessman Samuel Belzberg's First City Financial Corporation attempted a takeover of the company. Potlatch eventually bought back the corporation's 1.1 million shares, paying $8.1 million and ending the takeover bid. With the buyback, the stock returned to the control of the Weyerhaeuser family, the descendants of the original founder.[8]

In March 2002, Potlatch sold its Cloquet, Minnesota, pulp and printing papers facilities and associated assets to Sappi Limited for US$480 million. This sale marked its exit from the coated printing papers business. Sappi closed the facilities and moved the production to its own plants in Skowhegan, Maine, and Westbrook, Maine.[9]

In 2006, Potlatch restructured to form a real estate investment trust (REIT). In this restructuring all of the company's manufacturing operations are held by a wholly owned subsidiary, allowing the company to refocus on managing their large land holdings in Oregon, Idaho, Minnesota, and Arkansas.

In February 2018, Potlatch acquired Deltic Timber Corp., a smaller Arkansas-based timber company. Following the merger, the company was renamed PotlatchDeltic Corporation. The merged companies owned 2 million acres of timber in total.[10][11]

Properties

The company owns about 1,600,000 acres (6,500 km2) of land in rural Minnesota, Idaho, Wisconsin and Arkansas. The forestry products that it sells are processed at six company-owned facilities.[12]

Spin-off of Clearwater Paper Corporation

On December 9, 2008, Clearwater Paper Corporation, previously a subsidiary of Potlatch, was created via a spin-off, with Gordon L. Jones, a vice-president of Potlatch, as the new company's president and CEO.

Shares of Clearwater Paper (NYSE:CLW) stock were distributed to Potlatch share holders at a ratio of 1 share of Clearwater stock for every 3.5 shares of Potlatch stock held, with any fractional shares being paid in cash. Clearwater stocks began trading on December 16, 2008.

In August 2012, since Clearwater Paper's stocks have failed to rise, the company prepared to split in two and sell one or both businesses.[13]

Annual financial information (2001-2009)

Part of the reason for the large fall in revenue after 2005 is due to the divestiture of assets such as Clearwater Paper.

Financial Information
  2009[1] 2008[1] 2007[1] 2006 2005[14] 2004[14] 2003[14] 2002 2001
Total Revenue (US$M) 476.169 439.957 423.472 417.24 1,496.1 1,351.4 1,192.4 1,286.2 1,752.0
Net Income (Loss) (US$M) 81.431 72.937 74.642 139.11 32.9 271.2 50.7 (234.4) (79.4)

References

  1. 1 2 3 4 "Potlatch Corp. 2009 Annual Report". 2010.
  2. ↑ "Potlatch Corp. 2010 Third Quarter Financial Report". 2010-10-29.
  3. ↑ "Potlatch and Deltic Timber Complete Merger". February 20, 2018. Retrieved May 14, 2018.
  4. ↑ Reuters staff (October 22, 2017). "Potlatch nears all-stock acquisition of Deltic Timber: sources". Reuters. Retrieved May 14, 2018.
  5. ↑ By Arkansas Democrat-Gazette Staff (February 21, 2018). "Arkansas-based Deltic Timber completes merger with Potlatch". Arkansas Democrat-Gazette. Retrieved May 14, 2018.
  6. ↑ Keith Petersen and Mary Reed (November 2, 1985). "National Register of Historic Places Inventory/Nomination: Historic Resources of Potlatch MRA". National Park Service. Retrieved January 12, 2017.
  7. ↑ Keith Petersen and Mary Reed (November 2, 1985). "Idaho State Historical Society Inventory Sheet: Commercial Historic District". National Park Service. Retrieved January 12, 2017. with six photos from 1985
  8. ↑ LAWRENCE M. FISHER (November 13, 1985). "POTLATCH BUYS OUT BELZBERGS". The New York Times. Retrieved May 14, 2018.
  9. ↑ Associated Press (March 19, 2002). "COMPANY NEWS; SAPPI TO ACQUIRE POTLATCH FINE PAPER BUSINESS". The New York Times. Retrieved May 14, 2018.
  10. ↑ Reuters staff (October 22, 2017). "Potlatch nears all-stock acquisition of Deltic Timber: sources". Reuters. Retrieved May 14, 2018.
  11. ↑ By Arkansas Democrat-Gazette Staff (February 21, 2018). "Arkansas-based Deltic Timber completes merger with Potlatch". Arkansas Democrat-Gazette. Retrieved May 14, 2018.
  12. ↑ "Potlatch Corp. SEC info via Nasdaq". Retrieved 2011-02-02.
  13. ↑ SAC urges Clearwater Paper to ready itself for sale, Reuters, 21 August 2012
  14. 1 2 3 "Potlatch Corp. 2005 Annual Report" (PDF). 2006.
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