Rayonier Advanced Materials Inc. announced preliminary 2Q results which were impacted by COVID-19 market-related conditions. The company expects earnings and Adjusted EBITDA for the quarter to be slightly below prior year, driven by an approximately 12% decline in revenues.
Compared to the prior year period, results for the 2Q 2020 were aided by improvements in Forest Products and Paperboard segments driven by increased prices for lumber and lower raw material costs for paperboard, respectively.
These benefits were offset by COVID-related impact on:
- global demand for High Yield Pulp and Newsprint;
- sales volumes in High Purity Cellulose due to softer demand in textile, automotive and construction end markets; and
- logistics delays impacting High Purity Cellulose volumes. Corporate costs increased modestly from prior year, primarily due to an increase in non-cash charges. With a focus on working capital and capital expenditures, liquidity improved $19 million in the quarter to $164 million, including $49 million of cash.
Rayonier Advanced Materials is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The company also manufactures products for lumber, paper and packaging markets.
