“We are pleased with our outstanding performance in 2013, resulting in a 14% increase in pro forma EPS to $2.41 and strong operating cash flows. These results were achieved during a year in which we accomplished key strategic initiatives including completing our Jesup mill cellulose specialties expansion and increasing our ownership to acquire a majority interest in our New Zealand timberland joint venture,” said Paul G. Boynton, Chairman, President and CEO.
Forest Resources segment's 4Q sales of $105 million were $39 million above the prior year period, while operating income of $24 million improved $5 million. Full year sales of $382 million increased $152 million from 2012, while operating income of $81 million rose $35 million above prior year results. 4Q and full year 2013 periods included $47 million and $146 million, respectively, of sales and $1 million and $8 million, respectively, of operating income from the consolidation of the New Zealand joint venture.
Performance Fibers segment's 4Q and full year sales of $281 million and $1 billion were $19 million and $51 million, respectively, below the prior year periods. Lower cellulose specialties sales volumes due to the timing of customer orders and the impact of the cellulose specialties expansion (CSE) project more than offset higher cellulose specialties prices. Fourth quarter and full year operating income of $78 million and $311 million decreased $16 million and $48 million, respectively, due to higher production costs related to the CSE project, higher wood prices related to wet weather and the lower volumes.
“Today, we also announced that we intend to separate the Performance Fibers business from the Forest Resources and Real Estate businesses,” added Boynton. “Over the past few years, we have completed a number of strategic steps to position these businesses to operate as two industry-leading public companies with significant growth opportunities. The separation will provide investors with two strong companies, distinct businesses and focused investment identities. With an improving housing market and economy, and expanded capacity in Performance Fibers, we are excited about the prospects for these two businesses in the years ahead.”
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 2.6 million acres of timber and land in the United States and New Zealand.