Rayonier Advanced Materials (RYAM) Reports In-Line Q2 EPS

Rayonier Advanced Materials (NYSE: RYAM) reported Q2 EPS of $0.84, in-line with the analyst estimate of $0.84. Revenue for the quarter came in at $213 million versus the consensus estimate of $247.7 million.

“With the spin-off completed, we will now focus our attention on pursuing long-term growth opportunities, expanding our specialty chemical business, and increasing shareholder value,” said Paul G. Boynton, Chairman, President and CEO.

Outlook

Committed cellulose specialties sales volumes for 2014 remain consistent with 2013, despite the previously announced loss of volume from a 2013 customer. The Company continues to seek the previously targeted 30,000 tons of incremental cellulose specialties volumes, but intends to feather this into the market only as it is ready to be absorbed. Additionally, through the first half of 2014, costs have exceeded budgeted projections and will likely remain somewhat elevated through the remainder of the year. The higher costs and continued inability to place the incremental tons will cause the Company to be approximately 25 percent below 2013 segment EBITDA, or 10 percentage points below the previous guidance.

"As the market remains in transition, we will continue to focus on operational excellence and build stronger partnerships with our customers. Going forward, as the market grows, our newly converted line positions us well to grow with future demand and diversify without additional investment," stated Boynton.

For earnings history and earnings-related data on Rayonier Advanced Materials (RYAM) click here.

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