Jul 22, 2008. /Lesprom.com/. Rayonier reported 2Q net income of $37.4 million, or $0.47 per share, compared to $33.3 million, or $0.42 per share, in 2Q 2007. Year-to-date net income was $78.0 million, or $0.98 per share, compared to $68.4 million, or $0.87 per share, in the first six months of 2007. Prior year results included a $10 million loss from forest fires. Excluding this item, earnings for the three and six month periods ended June 30, 2007 were $43.4 million, or $0.55 per share, and $78.5 million, or $1.00 per share, respectively. “2Q results were solid despite challenging markets and the overall weakness in the economy,” said Lee M. Thomas, Chairman, President and CEO. “Strong demand in Performance Fibers and continued interest in non-strategic timberlands partially offset softness in sawlog prices and higher costs in Performance Fibers." Cash provided by operating activities of $155 million for the six months ended June 30 was $23 million above the 2007 comparable period primarily due to lower working capital requirements. Year-to-date, cash available for distribution of $97 million was $10 million below 2007. For 2Q 2008, timber sales of $55 million were $1 million below 2Q 2007, while operating income of $9 million was $12 million below the prior year excluding the $10 million fire loss. For the six months ended June 30, 2008, sales of $103 million were $19 million below the comparable prior year period, while operating income of $22 million was $26 million lower. The 2008 results reflect lower sawlog pricing due to the weak housing market and oversupply of salvaged timber in the Northwest from a December 2007 storm. Based on current conditions, the Company expects to continue its planned reduction in sawtimber harvest for the balance of the year thereby preserving higher-value timber until markets improve.