Rayonier Advanced Materials Inc. (the “Company”) (NYSE:RYAM) today reported first quarter 2019 net loss of $22 million, or $(0.52) per diluted common share, compared to net income of $24 million, or $0.38 per diluted common share for the same prior year quarter ended 2018.
- Significant increase in hardwood costs at Jesup plant coupled with unplanned downtime at
Temiscamingplant led to operating loss in High Purity Cellulose segment
- Expect to improve financial performance ultimately returning EBITDA margins to high teens in the back half of 2019, subject to fluctuations in commodity prices and tariffs
- Cellulose specialties prices and volumes for full year 2019 are expected to remain stable versus 2018; commodity product volumes are expected to be modestly lower compared to guidance
- Weaker than anticipated lumber, pulp and paperboard markets impacted results in Forest Products, Pulp, and Paper
- Previously announced review of strategic alternatives for certain commodity assets ongoing; process conclusion anticipated by end of second quarter
JACKSONVILLE, Fla.--May 8, 2019-- Rayonier Advanced Materials Inc. (the “Company”) (NYSE:RYAM) today reported first quarter 2019 net loss of $22 million, or $(0.52) per diluted common share, compared to net income of $24 million, or $0.38 per diluted common share for the same prior year quarter ended 2018. The decrease in net income is due primarily to lower commodity sales prices, higher hardwood costs, and operational issues in High Purity Cellulose.
“Our first quarter operating and financial results were disappointing and not reflective of the earnings potential of the Company. With unplanned production downtime in Temiscaming due to unforeseen boiler issues and higher hardwood costs in Jesup resulting from extreme periods of prolonged rainfall in the U.S. Southeast, the High Purity Cellulose segment significantly underperformed expectations in the quarter. Additionally, weaker lumber, pulp, and paperboard markets negatively impacted our results,” said Paul Boynton, Chairman, President and Chief Executive Officer. “We are actively addressing the High Purity Cellulose issues, which we believe will improve financial performance building sequentially through the remainder of 2019.”