Apr 30, 2009. /Lesprom Network/. Rayonier reported 1Q net income of $26 million, or 33 cents per share, compared to $40 million, or 50 cents per share, in 1Q 2008, as the company informed Lesprom Network. Cash provided by operating activities of $65 million was $35 million below the prior year period. Cash available for distribution1 of $54 million was $6 million below 1Q 2008. Lee M. Thomas, Chairman, President and CEO said, "The benefits of our business mix were clear as we continued to generate good cash flow, despite persistent weakness in the housing market. We experienced solid demand for our Performance Fibers products and non-strategic timberlands, which partially offset the softness in our timber business." Timber sales of $33 million declined $12 million from 1Q 2008, while operating income decreased $12 million to an operating loss of $1 million. Despite generating an operating loss, the Timber segment contributed $15 million of Adjusted EBITDA1 for the quarter. In the Eastern region, sales were comparable to the prior year period reflecting higher volumes offset by overall lower prices and a sales mix shift from sawtimber to pulpwood. In the Western region, sales declined from the prior year period as weak demand due to sawmill curtailments continued to negatively impact prices and volumes. Based on current conditions, the Company expects to operate at reduced harvest levels, particularly in the Northwest. Sales and operating income of performance fibers were $204 million and $41 million, an increase of $29 million and $4 million from the prior year period, respectively. Increased cellulose specialty prices were largely offset by higher caustic costs. Corporate and other expenses declined $1 million from the prior year period due to general cost reductions. Interest and other, net increased $1 million from 1Q 2008 due to higher average net debt balances. The 1Q effective tax rate from continuing operations before discrete items of 19.4% was consistent with the prior year period rate of 20.5%. Including discrete items, the 1Q 2009 effective tax rate from continuing operations was 16.8% compared to 20.0% in the prior year period. Rayonier is a leading international forest products company with three core businesses: Timber, Real Estate and Performance Fibers. The company owns, leases or manages 2.6 million acres of timber and land in the United States and New Zealand.