Gross and Janes Co.
Fall, 2016
Message From the Chief Executive Officer

As most of you already know, Bill Behan was recently promoted to President of Gross & Janes Co. and I am continuing in my position as Chief Executive Officer. This change allows me to concentrate on the overall strategic decisions and direction of the company and work with our board of directors to identify new opportunities to grow the company. My role will be important as we continue to assess new business opportunities to make Gross & Janes more profitable, stronger and sustainable well into the future.

Bill Behan will now be more involved in the day to day operations of the company, including periodic visits to our producer sawmills. Bill has a strong background in the sawmill business, having operated a large pine mill in Brookhaven, Mississippi for nearly 20 years. Bill and I have worked closely together for the past 18 months, and I am confident that his energy, enthusiasm and experience will serve the company, our suppliers and our customers well going forward.

In my new role, I will be spending most of my time at our headquarters in St. Louis and less time out in the field, which means I may not see you as frequently as before. However, I will remain available to you by phone or email should the need arise for us to talk. I am confident that the transition of Bill and I into our new roles will be seamless and that our commitment to working with you remains very strong.

Sincerely,

Mike Pourney

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Tommy Harris Retiring After 33 Years with Gross & Janes
Tommy HarrisIt is with humble gratitude that we announce that Tommy Harris is retiring from Gross & Janes, Co. after providing 33 years of dedicated service to the company and to our industry partners. Tommy began his Forest Products Industry career in 1966 with International Paper, and then joined Gross & Janes in 1983 as Yard Foreman for our Camden, Arkansas yard. He has since served our company in many roles and worked his way up to become our Southern Territory Manager in 2006 with responsibility for the purchase of all tie production across a multi-state region.

Tommy has provided Gross & Janes with valuable insights into the changing log and tie market conditions over the years. In addition, his purchasing and production knowledge enabled Gross & Janes to commit to a major re-building of our Camden processing plant in 2013. This includes the addition of equipment and processes to produce our patented borate pre-treated Tuff-Tie™. Today, the Camden processing plant provides the necessary increased capacity to serve our customers throughout North America.

“Over the years, we have received many compliments about Tommy and his dedicated service to the sawmills,” said Mike Pourney, Chief Executive Officer at Gross & Janes. “This speaks directly to the family owned business culture here at Gross & Janes that has supported our industry partners over the past 96 years. We would like to add a big thank you to Tommy for all he has done to help build our business and make a big difference along the way.”

Tommy is supported by his wife Teresa, loving daughter Kerry, son-in-law Justin and grand-daughter Rachel. The entire Gross & Janes family wishes Tommy the very best in his retirement and enjoyment of life.

Marketplace Report — Fall 2016
A random survey of selected sawmills was taken the week of October 17, 2016, to develop this non-scientific snapshot of the crosstie purchasing market. The report is broken down into four primary log-harvesting regions covering portions of Missouri, Arkansas, Texas and Louisiana (see map). It covers both oak and mixed-wood logs.

Highlights: Hardwood pulpwood prices across the South tumbled 5 percent during July/August to $8.51/ton. The West-South region plunged 6.4 percent to $10.78/ton, while the Mid-South slipped 3 percent to $7.99/ton and the East-South fell by 5.3 percent to $6.75/ton. Hardwood sawtimber prices showed modest gains (+1 percent) on a Southwide basis.

From July through early September, unusually wet weather conditions in East Texas, South Arkansas and Louisiana made logging conditions and log deliveries very difficult. In the past six weeks, these areas experienced a reversal of weather fortune and all species of logs are rolling again. The question on everyone’s mind is, will there be enough opportunity remaining in 2016 to build a winter log deck?

Diesel fuel increased $0.041 per gallon in the Midwest region and increased $0.040 per gallon in the Gulf Coast region during the week, while the national average price for gasoline decreased $0.015 per gallon. And according to Pallet Profile Weekly, pallet prices remained the same in Missouri, Arkansas, Louisiana and East Texas during the week.

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