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RAYONIER TIMBERLANDS, L.P. ANNOUNCES PRELIMINARY SECOND QUARTER AND SIX MONTHS TO DATE EARNINGS

 RAYONIER TIMBERLANDS, L.P. ANNOUNCES PRELIMINARY SECOND QUARTER
 AND SIX MONTHS TO DATE EARNINGS
 STAMFORD, Conn., July 28 /PRNewswire/ -- Rayonier Forest Resources Company (RFR), the managing general partner of Rayonier Timberlands, L.P. (NYSE: LOG), announced preliminary second quarter 1992 partnership results today.
 Sales for the second quarter were $26.9 million, an increase of $7.9 million over sales of $19.0 million for the second quarter of 1991. The increase resulted from higher harvest volume in the partnership's northwest region and increased prices in both the southeast and northwest regions.
 Partnership income of $19.7 million was $5.1 million higher than the $14.6 million earned in last year's second quarter. Income per class A unit (publicly traded) was $1.08 compared with 79 cents for the comparable period last year, and cash available from operations per class A unit was $1.15 compared with 1991 second quarter results of 85 cents.
 Sales for the first six months of 1992 were $64.0 million as compared to $39.6 million in the corresponding 1991 period. The increase in sales primarily resulted from higher harvest volumes in both regions, favorable product mix and the closing in the first quarter of a timberland sale for $8.6 million to the Quinault Indian Nation pursuant to a contract entered into in 1990. Partnership income of $48.0 million increased $19.2 million from $28.8 million earned in the first six months of last year and income per class A unit increased 89 cents per unit to $2.49. The Quinault timberland sale, originally scheduled to close in the fourth quarter, represented $8.0 million of the first half earnings.
 For the first six months of 1992, cash available from operations for class A units was $2.66 per unit, compared with $1.72 for the same period in 1991.
 Northwest stumpage harvest volumes in the second quarter were up approximately 33 percent from a year ago and for the first six months exceeded 1991 by 49 percent. Last year, northwest customers delayed harvesting contracted timber due to a slow economy and uncertainty over the impact of environmental restrictions. Compared to the respective 1991 periods, northwest stumpage prices in the second quarter were slightly higher, but were down 5 percent for the first half. Favorable specie and product mix sales in the first half of 1992 also contributed to the region's sales increase. Southeast pine volume in the second quarter was approximately the same as last year but up 14 percent versus the comparable six month 1991 period. Second quarter pine prices increased 12 percent from the prior year with prices for the six months to date 9 percent higher than the comparable 1992 period.
 At the end of the first half, 54 percent of the projected total year's harvest in the northwest and 67 percent of the projected pine harvest in the southeast, representing a combined 61 percent of the current projection of this year's harvest, had been cut. The comparable first half harvest percentages for 1991 were 38 percent, 57 percent, and 49 percent, respectively.
 Timber demand remains relatively firm and bid prices received on new contracts in the quarter were significantly higher than last year in both regions. Southeast bid prices on contracts awarded during the second quarter, representing an amount equal to about 14 percent of this year's projected harvest volume, exceeded last year's second quarter bid price level by 26 percent. Contracts equaling approximately 34 percent of this year's northwest expected harvest were awarded during the second quarter at bid prices about 27 percent higher than the prior year. Expiration dates on most of these contracts extend into 1993.
 The sale to the Quinault Indian Nation in the first quarter related to the third of four tracts which the Quinaults had the contractual right to purchase. The partnership has received notification from the Quinaults that they are electing to purchase and close the final timberland parcel in the third quarter of 1992. The contract required all parcels to close no later than November 1993. This sale has an expected value of approximately $8.3 million, and will contribute approximately $7.4 million to partnership income and 30 cents per class A unit. If the sale does close, management believes that the increased stumpage made available to the marketplace will likely cause a delay in the currently projected harvest of other partnership timber.
 ITT Rayonier Inc., the forest products subsidiary of ITT Corporation, owns 74.7 percent of the 20 million outstanding class A units of Rayonier Timberlands, L.P. The balance is publicly traded on the New York Stock Exchange.
 RAYONIER TIMBERLANDS, L.P.
 Preliminary Financial Highlights Second Quarter 1992
 (In thousands of dollars, except per unit data, unaudited)
 Quarter Ended June 30 1992 1991
 Sales $ 26,866 $ 19,045
 Partnership income 19,670 14,637
 Income per publicly traded
 class A unit 1.08 0.79
 Operating cash flow available per
 publicly traded class A unit 1.15 0.85
 Six Months Ended June 30 1992 1991
 Sales $ 64,024 $ 39,585
 Partnership income 47,995 28,802
 Income per publicly traded
 class A unit 2.49 1.60
 Operating cash flow available per
 publicly traded class A unit 2.66 1.72
 -0- 7/28/92
 /NOTE TO EDITORS: Rayonier Timberlands, L.P., grows and sells timber on 796,000 acres in the Southeast U.S. and on 376,000 acres in the Northwest U.S. The class A units are listed on the New York Stock Exchange and trade under the symbol LOG./
 /CONTACT: Martin Arnold of ITT Rayonier Inc., 203-964-4621/
 (LOG) CO: Rayonier Timberlands, L.P. ST: Connecticut IN: PAP SU: ERN


PS-LD -- NY093 -- 4319 07/28/92 17:42 EDT
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Date:Jul 28, 1992
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