Paul G. Boynton, Chairman, President and CEO commented, "We are pleased with 3Q results, our first on a stand-alone basis. We achieved pro forma EBITDA margin of approximately 27% and remain on-track to meet our previously announced guidance for 2014. Additionally, we successfully extended an existing contract with a significant long-term customer and look forward to growing with them in the future."
3Q 2014 sales of $254 million were $28 million favorable to the prior year period as lower prices were more than offset by higher cellulose specialties sales volumes, as anticipated. Full year cellulose specialties volumes are expected to be comparable to 2013.
Year-to-date sales of $710 million were $55 million below the prior year primarily due to lower prices. Year-to-date pro forma net income reflects lower cellulose specialties prices while costs increased due to higher wood, energy, interest and corporate expenses.
"As we finish the year, we continue to focus on operational excellence and producing the highest quality cellulose specialties. We recognize the current market dynamics and have embarked on initiatives to preserve and enhance profitability, protect and expand cellulose specialties sales, and grow outside our existing business. We are confident these initiatives will drive our profitability and shareholder value," stated Boynton.
Rayonier Advanced Materials is the leading global supplier of high-purity, cellulose specialties natural polymers for the chemical industry.
