This quarter's average precipitation for the regions covered by Timber Mart-South was 5.76 inches . Below are National Climatic Data for the three months within the first quarter. In general, wet weather seemed to hit the East Coast in January and move to the Gulf Coast during February. Large portions of the South were able to dry out in March, the first month within the quarter where rainfall amounts were below normal for several regions. This will bring TGC's total timberland holdings to 838,000 acres.
Potlatch expects to own a majority interest in the new company.
Additionally, Potlatch and TGC will enter into a long-term timber purchase agreement, where Potlatch will purchase all of the timber from TGC's timberlands at fair market prices. Potlatch will still retain it's Bradley, Arkansas hardwood mill. Once finalized,Potlatch will have earnings from the two sawmills and one plywood mill, synergy of their Bradley mill, and continued ownership of timberlands in Idaho and Minnesota. The reason, stated by many in the paper and forest products market, is that forest products companies are undervalued and are taking steps to help the financial community focus better on the underlying value of their assets. We are frequently asked how timber compares with other investments.