Covid-19 Impacts Hit Rayonier Advanced Materials Q2 Results

SEATTLE (Scrap Monster): Rayonier Advanced Materials Inc. announced preliminary results for the second quarter of 2020. The results were hugely impacted by adverse market conditions on account of Covid-19 pandemic. The company had faced huge loss in 2019.

According to company press release, the net earnings and adjusted EBITDA for the quarter are likely to decline, compared to the prior year quarter, mainly driven by 12% decline in revenues. This is despite notable improvement in Forest Products and Paperboard segments, on account of higher lumber prices and lower raw material costs for paperboard.

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The company’s profitability took a hit due to Covid-19 impacts on global demand for High Yield Pulp and Newsprint. The softer demand in end markets such as textile, automotive and construction impacted the sales volumes in High Purity Cellulose. The volumes were also impacted by logistic delays, the company press release said.

The year-on-year increase in non-cash charges resulted in modest jump in corporate costs. The company boosted its liquidity by $19 million to $164 million during the quarter, mainly due its ongoing focus on working capital and capital expenditures.

Rayonier Advanced Materials is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The company also manufactures products for lumber, paper and packaging markets.