Welcome to our dedicated page for Potlatchdeltic Corporation news (Ticker: PCH), a resource for investors and traders seeking the latest updates and insights on Potlatchdeltic Corporation stock.
Company Overview
PotlatchDeltic Corporation (PCH) is a diversified timberland real estate investment trust (REIT) that manages vast forest assets across multiple states. With a deep-rooted commitment to sustainable forest management and environmental stewardship, the company integrates extensive timberland holdings with wood products manufacturing and real estate development. Utilizing an integrated business model, PotlatchDeltic is actively involved in managing millions of acres of forest lands, operating sawmills, and an industrial-grade plywood mill, and leveraging its land assets for both recreational use and property development.
Core Business Areas
The company’s operations span several core areas:
- Timberland Management: The foundation of its business, involving careful stewardship of extensive forest lands to produce high-quality timber and sustain ecosystem health.
- Wood Products Manufacturing: Processing timber into various value-added wood products through its sawmills and industrial-grade facilities.
- Real Estate Development: Developing residential and commercial properties by leveraging its expansive land portfolio.
Sustainable Forest Management
PotlatchDeltic emphasizes sustainable practices across its operations. Implementing comprehensive environmental management systems (EMS) and best management practices (BMPs), the company ensures that timber harvesting is executed responsibly to protect water quality, wildlife habitats, and biodiversity. This strategy not only maintains the health of forest ecosystems but also supports recreational access, enabling public engagement with nature through controlled leases for camping, hiking, and other outdoor activities.
Operational Excellence and Employee Development
Operational excellence is achieved through robust safety protocols, continuous performance improvement strategies, and comprehensive employee training programs. The company fosters a culture of development by setting meaningful annual goals, providing ongoing feedback, and implementing succession planning. These measures ensure that team members are well-equipped to meet the challenges of the industry, thereby enhancing overall operational efficiency and safety standards across all facilities.
Market Significance and Competitive Landscape
Within the competitive forestry and land management sector, PotlatchDeltic stands out through its diversified approach. The combination of timberland management, wood products manufacturing, and real estate development provides a multifaceted revenue model that adapts to shifting market demands. By integrating sustainable practices with community-focused initiatives—such as public recreational leases—the company not only maximizes asset value but also reinforces its role as a responsible steward of natural resources.
This comprehensive approach, underscored by industry-specific practices and strategic organizational initiatives, situates PotlatchDeltic Corporation as a well-rounded and reliable entity in the timberland REIT sector. Whether evaluating its operational methods or its commitment to sustainable and safe practices, investors and industry followers can gain a deep understanding of how the company harnesses its extensive assets within the broader forestry landscape.
PotlatchDeltic is undertaking a significant tree planting initiative in Idaho, aiming to plant 6 million seedlings over 15,000 acres in six to eight weeks. This process involves an 18-month preparation period, including seedling growth in nurseries across the Pacific Northwest and southern British Columbia. Over 90% of the seedlings come from first-generation tree improvement programs, with more than 70% sourced from PotlatchDeltic's Cherrylane Seed Orchard. The planting season is compressed due to Idaho's climate and terrain, requiring precise timing to ensure seedling survival. Over 200 people are involved in the peak planting season, planting more than 280,000 seedlings daily. The initiative also aims to reduce costs and resource inputs by decreasing seedling stock size. Manual hand planting is necessary due to the terrain, with planters carrying up to 300 seedlings at a time. The effort relies on H-2B temporary labor visas, and the process is heavily regulated to ensure job availability for American citizens. This reforestation effort is critical for regulatory, environmental management, and wildlife benefits.
PotlatchDeltic has launched 'Salute', a Veterans Employee Resource Group in 2023, aimed at supporting veterans and military families within the company. The initiative, led by Executive Sponsor Robert Schwartz and Chair Daniel Cortes, serves 88 veteran team members who contribute valuable skills including teamwork, discipline, leadership, and adaptability. The PR also highlights the company's Gwinn sawmill facility, which operates on a former Strategic Air Command base (K.I. Sawyer Air Force Base) in Michigan's Upper Peninsula, representing a successful transition from military to industrial use after the base's closure in 1995.
PotlatchDeltic explains how sustainably managed forests help combat climate change through carbon management. Trees absorb CO2 and store carbon in their structure, while wood products act as 'carbon vaults'. Active forest management enhances carbon removal compared to unmanaged forests, with 68% of carbon in sawtimber transported to mills and 32% remaining on site. Wood products manufacturing stores about 55% of wood carbon, while residuals are used for additional products or biogenic energy. The cycle of planting, growth, and harvest creates cumulative carbon storage over time. U.S. forests, harvested wood products, and urban trees offset more than 11% of total GHG emissions annually.
PotlatchDeltic (PCH) reported Q3 2024 net income of $3.3 million, or $0.04 per diluted share, on revenues of $255.1 million, down from $23.7 million, or $0.29 per share, on revenues of $265.5 million in Q3 2023. The company generated Total Adjusted EBITDDA of $45.9 million with an 18% margin. Key highlights include completing the Waldo, Arkansas sawmill expansion project, expected to generate an additional $25 million in Adjusted EBITDDA annually under mid-cycle conditions. The company maintained strong liquidity of $460 million and repurchased 57,000 shares for $2.4 million.
PotlatchDeltic implemented the SLAM (Stop, Look, Assess, Manage) process across all wood products facilities in 2021 as a risk assessment program. SLAM reinforces individual accountability and hazard awareness before tasks. Safety Managers introduced SLAM, followed by online training for Team Members. The process involves completing SLAM cards for upset conditions, non-routine tasks, or tasks without a written job safety analysis.
In 2023, SLAM continued to enhance safety protocols. The program was further refined and integrated into daily operations for all Maintenance tasks at the Warren facility. SLAM Card usage across the division showed significant changes: 6,392 in 2021, 19,494 in 2022, and 12,306 in 2023. The decrease in 2023 reflects the integration of Job Hazard Analyses (JHA) and procedural enhancements, indicating a more systematic approach to risk assessment.
PotlatchDeltic (Nasdaq: PCH) has announced the release of its third quarter 2024 earnings on Monday, October 28, after market close. The company will host a live conference call and webcast on Tuesday, October 29 at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) to discuss the results.
Investors can access the webcast at www.potlatchdeltic.com via the Investors link or join the conference call using the following numbers:
- U.S./Canada: 1-888-510-2008
- International: 1-646-960-0306
Participants will need to provide the conference I.D. number 7281983. A replay of the call will be available until November 5, 2024, by calling 1-800-770-2030 (U.S./Canada) or 1-609-800-9909 (international) using the same I.D. number.
PotlatchDeltic has implemented a comprehensive timberland environmental management system (EMS) to achieve sustainable forest management objectives. The EMS includes:
- Training foresters and contractors
- Prescribing, monitoring, and inspecting forest management practices
- Tracking stakeholder feedback
- Internal inspections with implementation rates averaging 95% or higher
- Monthly regional reporting and annual business unit reviews
The EMS ensures compliance with regulations for wildlife conservation, biodiversity, and protection of water, fish, and endangered species. It also maintains third-party certifications under FSC® or SFI® standards for all timberlands. The system covers log sourcing for wood products facilities under SFI Fiber Sourcing and FSC Chain of Custody standards where applicable.
PotlatchDeltic emphasizes the importance of strong relationships with suppliers and contractors across its value chain. The company's Supplier Code of Conduct and Human Rights Policy outline expectations for these partners. Key aspects include:
1. Environmental compliance: Adherence to forestry regulations and best practices in timberlands and wood products facilities.
2. Human rights: Ethical treatment of workers, prohibition of harassment, and compliance with labor laws.
3. Safety: Commitment to worker safety in all environments.
4. Governance: Ethical business practices, protection of company assets, and compliance with anti-corruption laws.
PotlatchDeltic works with specialized contractors in timberlands and wood products facilities, emphasizing their expertise and local economic impact. The company maintains strict approval processes and ongoing monitoring for contractors, including safety training and performance evaluations.
PotlatchDeltic (PCH) has launched its Impacts podcast series, focusing on wildfire management in Idaho. The first episode features retired District Forester Rich McMillan discussing the company's approach to wildfire risk management. Key points include:
- Unique firefighting coordination due to checkerboard ownership patterns
- Increased measures for fire prevention and damage minimization
- Improved federal wildfire suppression through enhanced coordination
- The podcast series aligns with PotlatchDeltic's four Corporate Responsibility pillars: Forest, Planet, People, and Performance
This initiative demonstrates PotlatchDeltic's commitment to responsible forest management and environmental stewardship in the face of wildfire challenges.
PotlatchDeltic (PCH) is implementing forestry best management practices to protect water quality in Georgia and Alabama. The company is establishing hardwood streamside management zones (SMZs) in areas previously converted to pine plantations, which risked increased erosion. This process involves:
1. Creating a buffer zone around ephemeral channels
2. Removing existing pine trees from the buffer area
3. Protecting and promoting hardwood growth within the buffer
4. Recording and protecting these areas as young hardwood stands in their GIS mapping system
These efforts aim to enhance water quality, wildlife habitat, and biodiversity. The company believes this approach will better protect the litter layer on ephemeral channels during tree harvesting, as required by local BMPs.
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