Georgia-Pacific Say Earnings Will Beat Expectation
Atlanta, GA, Apr. 15--Forest products company Georgia-Pacific Corp. said Wednesday it will report first-quarter earnings above Wall Street's expectations, citing the performance of its building products businesses.
Strong prices for lumber and structural panels have boosted earnings for the past two quarters at several forest products companies, including Georgia-Pacific, Louisiana-Pacific Corp. and Weyerhaeuser Co.
Georgia-Pacific, the largest U.S. producer of structural panels, said it expects to report first-quarter 2004 earnings per share of about 60 cents, excluding six cents a share for expenses related to the early redemption of debt.
Analysts had forecast on average earnings of 48 cents a share, according to Reuters Research, a unit of Reuters Group Plc.
Strong growth in housing construction has driven prices for lumber up nearly 50 percent since last year, while panel prices have more than doubled, reaching historically high levels, according to analysts.
"You rarely see prices hit all-time highs in the first quarter," said D.A. Davidson analyst Steven Chercover. "It's going to be a very good year, because now we're getting into the meat of the building season."
Chercover said recently announced price increases for consumer products and improved performance in paper and packaging should also help Georgia-Pacific in the near future.
