Rayonier reported second quarter net income of $108 million

Jul 31, 2009. /Lesprom Network/. Rayonier reported second quarter net income of $108 million, or $1.35 per share. Year-to-date net income was $134 million, or $1.68 per share, the company informed. In April 2009, Rayonier became eligible for a tax credit equal to 50 cents per gallon of biomass-based fuels (“black liquor”) burned as an alternative fuel mixture used at its Performance Fibers mills. Second quarter net income includes $79 million, or 99 cents per share, for alternative fuel mixture credit (“AFMC”) related to black liquor burned from January 19, 2009 through the end of the second quarter. Excluding the AFMC, second quarter earnings were $28 million, or 36 cents per share, compared to $37 million, or 46 cents per share, in the prior year period. Earnings for the six months ended June 30, 2009 were $54 million, or 68 cents per share, compared to $76 million, or 96 cents per share, in the first six months of 2008. Cash provided by operating activities of $127 million for the first six months of 2009 was $28 million below the prior year. Cash available for distribution1 of $95 million was $2 million below the first half of 2008. Lee M. Thomas, Chairman, President and CEO said, "In the second quarter, we continued to benefit from our business mix and generated good cash flow, despite the difficult economy. Continued interest in our non-strategic timberlands and solid Performance Fibers results helped offset the impact of the weak housing market on our timber segment.” “Our unique business mix, strong balance sheet, and conservative debt levels provide significant operating flexibility. We expect to generate strong cash flows in 2009 well above our $2.00 per share dividend and are increasing our full year guidance for CAD to be comparable to 2008. Also, we anticipate EBITDA to be only 5 percent to 10 percent below 2008 compared to previous guidance of 10 percent to 15 percent lower and EPS (excluding AFMC) to be 15 percent to 20 percent below 2008, versus previous guidance of 20 percent to 25 percent lower,” said Thomas. “We are encouraged by the gradual improvement recently seen in housing starts and the continued export demand for our Western and New Zealand timber, however, we will continue to reduce sawtimber harvest levels until demand and pricing improve. In Real Estate, we expect continued interest in our rural HBU and non-strategic timberlands. And in Performance Fibers, earnings are expected to remain strong and above 2008 levels.”