Oct 29, 2012. /Lesprom Network/. Rayonier reported 3Q net income of $81 million, or 62 cents per share, compared to $105 million, or 84 cents per share, in the prior year period. The 2011 results included a $16 million tax benefit from the reversal of a reserve relating to the taxability of the 2009 alternative fuel mixture credit (AFMC). Excluding this benefit, 3Q 2011 net income was $89 million, or 71 cents per share, as the company said in the press release received by Lesprom Network. Year-to-date 2012 net income totaled $203 million, or $1.58 per share, compared to $220 million, or $1.75 per share, in 2011. Excluding the tax benefit from the AFMC, net income for the first three quarters of 2011 was $204 million, or $1.62 per share. “We are pleased to report continued strong operating results this quarter in line with our expectations. In Performance Fibers, the cellulose specialties market remains strong, and in Forest Resources, sales increased as we added volume from our recent acquisitions,” said Paul G. Boynton, Chairman, President and CEO. Forest Resources segment's 3Q sales of $60 million were $3 million above the prior year period, while operating income of $11 million was comparable. Year-to-date sales of $165 million increased $2 million over prior year, while operating income of $27 million declined $7 million primarily due to lower prices in the Pacific Northwest and New Zealand reflecting weaker Asian demand. 3Q and year-to-date sales improved over the prior year in the Gulf States region due to higher volumes from the 2011 timberland acquisitions. Performance Fibers segment's 3Q sales of $288 million were $33 million above the prior year period, while operating income of $101 million improved $27 million. Year-to-date sales of $794 million were $55 million above the comparable 2011 period, while operating income of $266 million increased $44 million. The 2012 results reflected higher cellulose specialties prices partially offset by a decline in absorbent materials prices and higher production costs. 3Q 2012 also benefited from higher cellulose specialties volumes due to timing of shipments. Wood Products segment's operating income improved $2 million and $8 million for the three and nine months ended September 30, 2012, respectively, compared to the prior year periods as prices and volumes increased due to higher demand. Corporate and other expenses were $3 million above 3Q 2011, which benefited from a favorable insurance settlement. Year-to-date corporate and other expenses were $4 million above the prior year due to higher stock-based compensation and pension costs. “We are positioned for another strong year as our businesses continue to execute well, creating strong operating cash flows” said Boynton. “In Forest Resources, we will continue to capitalize on local market opportunities in the Southeast. In Performance Fibers, we anticipate another record year driven by strong cellulose specialties markets and we remain on track to complete our cellulose specialties expansion project by mid-2013.” “Overall, we expect operating income to increase approximately 10% over 2011. However, due to the non-routine tax benefits detailed above, we still expect full year earnings to be comparable to 2011, excluding special items. We anticipate CAD to range from $295 million to $310 million, substantially above our recently increased dividend,” Boynton concluded. Rayonier is a leading international forest products company with three core businesses: Forest Resources, Real Estate and Performance Fibers. The company owns, leases or manages 2.7 million acres of timber and land in the United States and New Zealand.