Apr 22, 2008. /Lesprom.com/. Rayonier reported 1Q net income of $40.6 million, or $0.51 per share, compared to $35.1 million, or $0.45 per share, in 1Q 2007. “Despite a weak timber market, 1Q results were quite good,” said Lee M. Thomas, Chairman, President and CEO. “Softness in timber prices and lower volumes from our planned reductions in sawlog harvests were offset by strong demand in Performance Fibers and demand for higher and better use rural properties and non-strategic timberlands. We also executed on our strategy to grow and upgrade our timberland portfolio, as evidenced by our recent acquisitions of more than 110,000 acres in Washington and New York." Cash provided by operating activities of $100 million was $48 million above the prior year period due to lower working capital requirements and higher operating earnings. Cash available for distribution1 of $61 million was comparable to 1Q 2007. In 1Q 2008, timber sales and operating income were $47 million and $12 million, $18 million and $14 million below the prior year period, respectively, due to the weak housing market’s impact on sawlog pricing and the Company’s planned reductions in sawlog volume. Based on current conditions, the Company expects to continue to limit its sawtimber harvest for the balance of the year preserving higher-value timber until markets improve. “Given the outlook for the timber and real estate markets, we expect that 2Q and full year 2008 earnings will be below prior year periods. However, we anticipate that the softness in those markets will be somewhat offset by the continued strength in Performance Fibers,” said Thomas. Rayonier is an international forest products company with three core businesses: Timber, Real Estate and Performance Fibers.