Rayonier Advanced Materials Inc. reported 2Q 2019 net loss of $15 million, compared to net income of $54 million 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, as the company said in the press release received by Lesprom Network.
Year-to-date net loss was $37 million compared to net income of $78 million for the first half of 2018. The prior year-to-date net income included a $15 million, gain on bargain purchase associated with the acquisition of Tembec Inc.
“Though the 2Q 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 CEO. “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.”
Rayonier Advanced Materials is a global leader of cellulose-based technologies, including high purity cellulose specialties.
