Timber company, Rayonier reported a fourth quarter net income of $13.5 million up from $2.0 million the year before.
Lee Nutter, Chairman, President and CEO said: “We had a very strong first year as a REIT and are enthusiastic about the opportunities it provides to grow the company, capitalize on tax-efficient transactions and further increase shareholder value. In 2004, prices improved in all of our businesses and demand was strong, especially for Northwest timber, higher-and-better use (HBU) properties and our premium cellulose specialties. Our strong cash flow enabled us to pay dividends of $111 million, make an $89 million timberland acquisition, invest $89 million in our businesses and end the year with cash and cash equivalents of $84 million.”
Fourth quarter earnings were below third quarter primarily due to the lower LKE benefits. Operating results were also lower due to higher performance fibers and lumber manufacturing costs and weaker lumber prices, partially offset by increased sales of HBU properties and higher timber margins. Compared to fourth quarter 2003, earnings were up significantly, primarily due to improved pricing for performance fibers, Northwest U.S. timber and wood products and increased sales of HBU properties.
Fourth quarter and third quarter 2004 results included tax benefits from like-kind exchange (LKE) transactions of 2 cents and 20 cents per share, respectively, while last year’s fourth quarter included a tax benefit of 9 cents per share associated with the settlement of a foreign currency denominated inter-company loan. Also, fourth quarter 2003 was adversely affected by 3 cents per share for costs associated with the company’s conversion to a REIT and 6 cents per share due to a delay of some Northwest timber sales until 2004 to take advantage of the company’s conversion to a REIT.
Rayonier expects first-quarter 2005 earnings to top the fourth-quarter results but to be lower than the previous year.
Murdok | Breaking eBusiness News
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