Rayonier Reported Net Loss of $14 Million in Q3 2019

SEATTLE (Scrap Monster): Jacksonville, Fla.-based Rayonier Advanced Materials declared results for third quarter 2019.

The company reported net loss from continuing operations of $14 million during the quarter. This compares with income of $30 million during the same quarter a year before. Adjusted net loss for the quarter was $15 million, as compared with net income of $27 million in Q3 last year. The net loss and adjusted net loss improved upon comparison with the prior quarter. During the initial nine-month period ended September 28, 2019, the company reported net loss of $62 million, compared to net income of $93 million during the same period last year, said new release issued by the company.

ALSO READ: Spiraling Hardwood Lumber Costs Drag Rayonier to Substantial Loss in Q1

Commenting on the results, Paul Boynton, Chairman, President and Chief Executive Officer noted that the company has made notable progress in its initiatives aimed at overcoming market difficulties. The company plans to focus on cost and capital expenditure reduction, so as to boost cash flow, thereby improving its balance sheet, he added.

The operating income from Pulp segment declined by $15 million during Q3 ’19 and by $34 million during the nine-month period of the year, mainly on account of lower sales of high-yield pulp. The Paper segment operating income too declined by $13 million and $23 million during Q3 ’19 and Jan-Sep ’19 period respectively.

Going forward, the stability in Chinese high-yield pulp markets will result in modest increase in regional pricing. However, the North American paperboard prices are likely to remain under pressure, primarily due to increased competition.