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RAYONIER TIMBERLANDS, L.P. ANNOUNCES PRELIMINARY FIRST QUARTER EARNINGS

 STAMFORD, Conn., April 28 /PRNewswire/ -- Rayonier Forest Resources Company ("RFR"), the managing general partner of Rayonier Timberlands, L.P. (NYSE: LOG), announced preliminary first quarter 1993 partnership results today.
 Sales for the period were $31.2 million, representing a decrease of $5.9 million from sales in the first quarter of 1992. Timber sales were $31.1 million increasing $2.6 million from the prior year with improved prices partially offset by lower harvest volumes in both the Southeast and Northwest regions. Timberland and other land sales were $0.1 million in 1993, decreasing $8.5 million from first quarter 1992 sales. Timberland and other land sales in 1992 included $8.6 million from the sale of the third of four timberland tracts sold to the Quinault Indian Nation.
 Partnership income of $23.0 million was $5.3 million lower than 1992's first quarter results, which included $8.0 million of income from the Quinault sale. Income per publicly traded Class A unit decreased 18 cents to $1.23 while operating cash flow allocable to a Class A unit decreased 21 cents to $1.30. In the prior year first quarter the Quinault sale accounted for 31 cents and 32 cents of income and cash allocable, respectively, per Class A unit. Excluding the effect of last year's Quinault transaction, first quarter 1993 income per publicly traded Class A unit increased 13 cents and operating cash flow allocable to a Class A unit increased 11 cents.
 Northwest stumpage and Southeast pine volume decreased 29 percent and 13 percent, respectively, from the prior period. Northwest customers slowed harvest rates, anticipating rising prices for logs. In the Southeast, cutting was hampered due to unusually wet weather and a smaller than usual contract backlog at the beginning of the year.
 Northwest stumpage and Southeast pine prices for timber harvested increased 19 percent and 31 percent, respectively. Prices received for timber harvested during the quarter were generally for contracts awarded in the second half of 1992. Recent bid prices are much higher. The 1993 first quarter harvest volume represents approximately 28 percent of the current projection of this year's total harvest. The harvest volume in the first quarter of 1992 was 34 percent of that year's total harvest.
 Overall timber available in the Northwest is limited due to environmental restrictions and litigation which caused prices to increase steadily during the period. In the Southeast, serious wet weather conditions and related concerns over nationwide timber and lumber availability also sparked a significant increase in prices.
 In the Northwest, where approximately 32 percent of this year's planned harvest volume was awarded during the first quarter, bid prices exceeded last year's first quarter level by 81 percent. Contracts equaling approximately 59 percent of this year's Southeast expected harvest were awarded at bid prices 31 percent above the prior year. Contract terms, however, allow for harvesting over various time periods and volume currently under contract may not be fully cut out within this year.
 ITT Rayonier Inc., the forest products subsidiary of ITT Corporation (NYSE: ITT), 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
 First Quarter 1993 (Unaudited)
 (Thousands of dollars, except per unit data)
 Quarter ended March 31 1993 1992
 Sales $31,209 $37,158
 Partnership income $23,014 $28,325
 Income per publicly traded Class A unit $1.23 $1.41
 Operating cash flow allocable to a
 publicly traded Class A unit $1.30 $1.51
 Rayonier Timberlands, L.P., grows and sells timber on 794,000 acres in the Southeast U.S. and on 369,000 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- 4/28/93
 /CONTACT: Martin Arnold of ITT Rayonier, 203-964-4621/
 (LOG)


CO: Rayonier Timberlands, L.P. ST: Connecticut IN: PAP SU: ERN

GK-OS -- NY106 -- 2280 04/28/93 16:52 EDT
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Publication:PR Newswire
Date:Apr 28, 1993
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