Rayonier reports Q4 net income of US$64.2M, on revenues of US$239.7M, up from income a year ago of US$48.3M on revenues of US$229.3M, and 2017 net income of US$148.8M on revenues of US$819.6M. It’s reported that the Pacific Northwest, New Zealand and Real Estate performed strongly for the company.
For New Zealand, fourth quarter sales of $59.3 million increased $9.2 million, or 18%, versus the prior year period. Harvest volumes increased 16% to 649,000 tons versus 562,000 tons in the prior year period, driven primarily by incremental volume from recent acquisitions.
Average delivered prices for export sawn timber increased 11% to $115.77 per ton versus $104.26 per ton in the prior year period, while average delivered prices for domestic sawn timber increased 7% to $83.02 per ton versus $77.41 per ton in the prior year period. The increase in export sawn timber prices was primarily due to stronger demand from China.
The increase in domestic sawn timber prices (in U.S. dollar terms) was driven by strong local demand for construction materials, partially offset by a modest decrease in the NZ$/US$ exchange rate (US$0.70 per NZ$1.00 versus US$0.72 per NZ$1.00).
Excluding the impact of foreign exchange rates, domestic sawn timber prices increased 11% from the prior year period. Operating income of $16.1 million increased $4.4 million versus the prior year period due to higher prices ($5.3 million) and higher volumes ($2.1 million), which were partially offset by lower carbon sales ($2.8 million), higher road maintenance costs ($0.1 million) and higher depletion rates ($0.1 million).