Rayonier reports first quarter 2018 results
By P&PC staff
By P&PC staff
May 15, 2018 – Rayonier Advanced Materials Inc. of Jacksonville, Fla. has reported a first quarter 2018 net income of $24 million, compared to $10 million in the first quarter of 2017. It represents a 153 per cent increase in diluted earnings per share.
Increased earnings are largely attributed to the November 2017 acquisition of Tembec Inc.
“Our first full quarter of operations following the acquisition of Tembec clearly demonstrates the accretive benefits of the enhanced scale and diversity of our combined business, as strength in our commodity segments offset temporary challenges in our high purity cellulose segment,” Paul Boynton, chairman, president and chief executive officer, said. “While I am disappointed with the production issues in our Jesup and Tartas facilities and an unexpected spike in natural gas distribution costs during the unusually cold January in the southeast U.S., I am confident that these issues are behind us. Importantly, robust pricing and profitability in our high yield pulp and lumber businesses are now expected to remain at elevated levels through the near term. The integration of Tembec’s operations are proceeding in line with our expectations as we delivered over $7 million of savings during the quarter and anticipate that these results will accelerate through the year as we work to reach our $40-million target. Looking forward, I am confident in our ability to execute on our strategic plan for the full year.”
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