Friday, August 11, 2006

Operating Legally, Weather and 'Operational Inefficiency' Puts a Crimp in PL's Style



According to Maxxam in an Aug. 11th press realease their subsidiary, Pacific Lumber (aka Palco, or, PL), suffered a $13.1 million decrease in net sales.

First they say the decrease in sales "was due to a decline in lumber shipments as a result of a lower log supply" and "an increase in the volume of lumber" put into PL's "redwood lumber drying program during the second quarter of 2006, as compared to the same period in 2005."

Maybe someone else can explain how an increase in the amount of lumber in the "drying program" contributes to a decrease in sales.

Then Maxxam goes on to explain that "The lower log supply from ScoPac was due to adverse weather conditions in early 2006 and harvest restrictions."

Then the kicker...

Buried in the document is the statement that PL's operating losses in the first half of 2006 are partly the result of "operational inefficiencies related to Palco's new sawmill".

Thats right, the new "Hi-Tech" sawmill that PL claimed had "taken redwood lumber production to new heights".

The one that needs less human operators and required a new runoff pond that leaches toxic waste into the river just upstream of Rio Dell's municipal water supply. Which in turn required a cover-up which required harrasment and intimidation of a potential whistle blower that led to a harrasment lawsuit filed against now former PL ceo Robert "Hatchet Man" Manne.



Funny, I've never saw anything about "operational inefficiencies" in any of the Hatchet Man or New Guy's ramblings.

Did anyone else hear about that?

Maybe PL's friends at the Eureka Reporter can get them to elaborate on this.

Later on in the press release Maxxam hits us with a doomsday prediction-

"As previously announced, ScoPac ( PL's land management branch) expects to incur substantial interest shortfalls over at least the next several years.

There can be no assurance that ScoPac will be able to generate sufficient additional liquidity to fund the expected future cash shortfalls. To the extent that ScoPac is unable to generate sufficient liquidity from property sales or other sources, the Company expects that ScoPac will be forced to take extraordinary actions, which may include: laying off employees, shutting down various operations, and seeking protection by filing under the Bankruptcy Code."

5 Comments:

At 8/12/2006 11:00:00 AM, Blogger Heraldo said...

What happened to the roses? I thought everything was fair and square. It must have been a load of poppycock.

Good ol' PL, keeping everyone on the edge of their seat with the threat of impending lay-offs.

 
At 8/12/2006 09:05:00 PM, Blogger noel adamson said...

In court recently they said all of their losses for a number of years were due to Kimberly Starr and other protestors but that their financial records didn't reflect it because...because...

 
At 8/15/2006 09:33:00 AM, Anonymous Anonymous said...

I don't understand why all of you are constantly trying to destroy PL. They are a good company, they take care of their employees, they help the community, they spend more on science, and Maxxam has proven over and over again they are here to stay.

And for those who say that PL has some secret dump or something polluting the Eel River where is the Regional Water Board? And remember that water goes to Scotia also, so Manne and all those evil PL workers would have been drinking the same water. And last time I heard, the water in Scotia is some of the best in Humboldt County.

So how about rallying around a longtime company that does a lot of good for the community, our environment and all of us.

 
At 8/16/2006 12:30:00 PM, Anonymous Anonymous said...

Good company? Takes care of their employees? What planet do you live on? Maxxam destroyed the job stability that sustained this area for generations. Maxxam has unleashed damages to the watersheds and economy that will take decades to recover.

Maxxam has not proven they are "here to stay," and if they did we would revolt. Maxxam is a parasite of the worst order.

 
At 8/16/2006 07:09:00 PM, Blogger saf said...

9:33-
First of all who are the "all of you" you refer to? This blog is written independently by one person with occasional editing help.

I have never tried to destroy PL. What I've done is tried to prevent the destruction of some of the last Old Growth Redwood Forests. The few groves still standing that are threatened with logging. These trees, some of which are thousands of years old, wouldn't sustain an industrial operation like Maxxam's PL for more than a few months, if that.

"And for those who say that PL has some secret dump or something polluting the Eel River where is the Regional Water Board?"

I don't know maybe you should ask Jimmy Dan Cook.

Your comment contained little if any information to back up your claims.

When you say "they spend more on science" I can't help but see the double meaning which you probably didn't intend.

 

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