- Improved High Purity Cellulose sequential results as higher wood costs and operating issues were mitigated
- Go-to-Market strategy implementation yielding positive initial customer outcomes
- Sale of Matane high-yield manufacturing facility for $175 million; anticipated to close in fourth quarter
- Improved cash flows driven by aggressive management of working capital
- Sales prices for commodity products remain under pressure from global trade uncertainties
JACKSONVILLE, Fla.-- Aug. 7, 2019 -- Rayonier Advanced Materials Inc. (the “Company”) (NYSE:RYAM) today reported second quarter 2019 net loss of $15 million, or $(0.37) per diluted common share, compared to net income of $54 million, or $0.83 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 wood costs, and the residual impact of first quarter operational issues in High Purity Cellulose.
Year-to-date net loss was $37 million or $(0.89) per diluted common share compared to net income of $78 million or $1.22 per diluted common share for the first half of 2018. The prior year-to-date net income included a $15 million, or $0.23 per diluted common share, gain on bargain purchase associated with the acquisition of Tembec Inc.
“Though the second quarter was an improvement in the sequential operating results of the Company, we continue to be impacted by collapsing commodity demand and prices. Year-to-date these lower prices have resulted in an $85 million decline in operating income over the prior year,” said Paul Boynton, Chairman, President and Chief Executive Officer. “As a result, we are implementing more significant measures to lower costs, reduce capital expenditures, generate cash and improve our balance sheet position to navigate these challenging markets.”
Source: Rayonier Advanced Materials