For the full year, the Company reported net income of $32 million. Excluding environmental, separation and legal costs, full year pro forma net income was $106 million, compared to $205 million in 2013.
“As expected, market conditions remained challenging in the 4Q 2014,” said Paul Boynton, Chairman, President and CEO. “Throughout the year, cellulose specialties markets were oversupplied and global demand decelerated. To offset some of the impact from the resulting lower prices, we focused our efforts on reducing costs and improving our operating efficiencies. Consequently, in spite of experiencing higher than anticipated costs in the second half of the year, we were able to achieve the full year guidance provided in July.”
In the 4Q 2014, sales were $248 million compared to $282 million in the prior year period. The $34 million decline was primarily due to lower cellulose specialties sales prices.
The Company incurred an operating loss of $28 million for the 4Q. Excluding environmental, separation and legal costs, pro forma operating income was $47 million, $26 million below 4Q 2013 pro forma results of $73 million, largely due to lower cellulose specialties prices.
For the full year, sales were $958 million in 2014 and $1,047 million in 2013. The $89 million decrease is primarily due to an 8% decline in cellulose specialties prices.
Full year operating income was $63 million and $289 million for 2014 and 2013, respectively. Excluding environmental, separation and legal costs, pro forma operating income was $181 million and $295 million for 2014 and 2013, respectively. The decline was primarily due to lower cellulose specialties prices and higher input costs.
Rayonier Advanced Materials is the leading global supplier of high-purity, cellulose specialties natural polymers for the chemical industry.