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RAYONIER TIMBERLANDS, L.P. ANNOUNCES THIRD QUARTER AND NINE MONTHS TO DATE EARNINGS

 RAYONIER TIMBERLANDS, L.P. ANNOUNCES THIRD QUARTER
 AND NINE MONTHS TO DATE EARNINGS
 STAMFORD, Conn., Oct. 29 /PRNewswire/ -- Rayonier Forest Resources Company (RFR), the managing general partner of Rayonier Timberlands, L.P. (NYSE: LOG), announced third quarter 1992 partnership results today.
 Sales for the third quarter were $28.7 million, an increase of $4.9 million from sales of $23.8 million for the third quarter of 1991. Third quarter 1992 results include $8.2 million from the sale of the fourth and final timberland tract to the Quinault Indian Nation, under its November 1990 contract with the partnership. The sale of this tract had originally been scheduled to close in the fourth quarter of 1993 but was accelerated by the Quinaults as permitted under their purchase agreement.
 Partnership income of $21.8 million was $5.3 million higher than the $16.5 million earned in last year's third quarter. Income per Class A unit (publicly traded) was $1.11 compared with 91 cents for the comparable period last year, and cash available from operations per Class A unit was $1.16 compared with 1991 third quarter results of 98 cents. The Quinault sale accounted for 30 cents and 31 cents of income and cash available, respectively, per Class A unit in this year's third quarter.
 Sales for the first nine months of 1992 were $92.7 million as compared to $63.3 million in the corresponding 1991 period. The increase in sales primarily resulted from higher harvest volumes and prices in the Northwest region and the sale of the third and fourth tracts of the Quinault transaction. Fiscal 1991 results for the first nine months did not include the sale of any tract to the Quinaults because the 1991 tract sale closed in the fourth quarter. The two 1992 Quinault sales contributed $16.8 million in sales for this year's first nine months. Partnership income of $69.8 million increased $24.5 million from $45.3 million earned in the first nine months of last year and income per Class A unit increased $1.09 per unit to $3.60. The two Quinault sales contributed $15.6 million in income for the first nine months of 1992.
 For the first nine months of 1992, cash available from operations for Class A units was $3.82 per unit, compared with $2.70 for the same period in 1991. The Quinault sales accounted for 61 cents and 63 cents of income and cash available, respectively, per Class A unit for the first nine months of 1992.
 Northwest stumpage harvest volumes exceeded 1991 by 16 percent during the first nine months although third quarter stumpage volumes declined by approximately 24 percent from prior year's third quarter level. Year-to-date stumpage harvest volumes were impacted by severe fire restrictions in the third quarter as well as stronger harvesting in the first six months of 1992 as customers returned to historical cutting patterns. Northwest stumpage prices for the first nine months increased by 4 percent compared to the respective 1991 period and for the third quarter stumpage prices were up by 25 percent.
 Southeast pine volume increased 3 percent versus the comparable nine month 1991 period. Nearly 67 percent of projected 1992 harvest activity was completed in the first half of 1992 compared to 57 percent in 1991. Pine volume in the third quarter declined by 24 percent from the prior year's third quarter level. Pine prices for the nine months to date were 8 percent higher than the comparable 1991 period with prices for the third quarter 7 percent higher than the prior year.
 At the end of the first nine months, 76 percent of the projected total year's harvest in the Northwest and 86 percent of the projected pine harvest in the Southeast, representing a combined 81 percent of the current projection of this year's harvest, had been cut. The comparable first nine months percentages for 1991 were 66 percent, 78 percent, and 73 percent, respectively.
 Timber demand varies between the two regions. Contracts equaling approximately 15 percent of this year's Northwest expected harvest were awarded during the third quarter at bid prices about 38 percent higher than the prior year. Southeast bid prices on contracts awarded during the third quarter represented an amount equal to about 5 percent of this year's projected harvest volume with bid price levels declining slightly from last year's third quarter. Expiration dates on most of these contracts extend into 1993.
 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 NYSE.
 RAYONIER TIMBERLANDS, L.P.
 Preliminary Financial Highlights
 Third Quarter 1992 (unaudited)
 (in thousands of dollars, except per unit data)
 Quarter ended Sept. 30 1992 1991
 Sales $28,718 $23,762
 Partnership income 21,821 16,543
 Income per publicly traded Class A unit $1.11 $0.91
 Operating cash flow available per publicly traded
 Class A unit 1.16 0.98
 Nine months ended Sept. 30 1992 1991
 Sales $92,742 $63,347
 Partnership income 69,816 45,345
 Income per publicly traded Class A unit $3.60 $2.51
 Operating cash flow available per publicly traded
 Class A unit 3.82 2.70
 Note -- Rayonier Timberlands, L.P. grows and sells timber on 796,000 acres in the southeast U.S. and on 370,000 acres in the northwest U.S. The Class A units are listed on the New York Stock Exchange and trade under the symbol LOG.
 -0- 10/29/92
 /CONTACT: Martin Arnold of Rayonier, 203-964-4621/
 (LOG) CO: Rayonier Timberlands, L.P. ST: Connecticut IN: PAP SU: ERN


GK-KD -- NY097 -- 6844 10/29/92 17:42 EST
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Date:Oct 29, 1992
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