Rayonier Announces Average Cellulose Specialties Price Change for 2014

Rayonier expects prices in 2014 for cellulose specialties grades will be seven to eight percent below 2013.

Dec. 17, 2013 - Rayonier Inc. yesterday said that it has concluded negotiations with customers for prices and volumes of cellulose specialties grades in 2014. On average, the company expects that prices will be seven to eight percent below 2013, consistent with the market pressures discussed in its third-quarter earnings call in October.

The company now expects 2014 sales volumes of cellulose specialties of 520,000 to 540,000 metric tons, an increase of 30,000 to 50,000 tons above 2013. This represents an improvement from the earlier estimated increase of 15,000 to 40,000 tons. Higher expected 2014 volumes reflect the successful completion of the Cellulose Specialties Expansion (CSE) project at the company’s Jesup, Georgia (USA) mill that expanded capacity of high-margin specialty grades by 190,000 metric tons and customer commitments for additional volume from the expansion during the multi-year ramp-up period.

Paul Boynton, Chairman, President and CEO stated, “After years of price increases, we have worked with our customers to moderately reduce 2014 cellulose specialties prices in response to what we believe are near-term supply and demand conditions. We remain confident that our technical leadership, commitment to quality, and increasing specialties sales volumes from the CSE project position our Performance Fibers business for long-term earnings growth.”

In addition, Boynton noted, “With the completion of these negotiations and strengthening timber markets, we now anticipate that cash available for distribution in 2014 will be at or above the 2013 level.”

Rayonier is a leading international forest products company with three core businesses: Forest Resources, Real Estate and Performance Fibers. The company owns, leases or manages 2.7 million acres of timber and land in the United States and New Zealand. For more information visit: www.rayonier.com.

SOURCE: Rayonier