Timber Could Go Through The Roof

For those with acres of timber to sell, 1992 was a dream come true, but for the papermaking end of the forest-products business, it was a nightmare. Lumber prices rose 20% last year, while prices of almost all paper were as limp as the struggling economy. As a result, earnings from wood operations for the 19 largest companies more than doubled, while paper divisions suffered a 21% decline in profits, says Evadna Lynn, a Dean Witter Reynolds analyst.

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