Rayonier Inc.’s New Zealand and Pacific Northwest timber segments faced challenging conditions during Q2, according to the company’s CEO David Nunes.
Nunes said the southern timber segment had delivered a strong quarter, as markets benefited from increased demand from new mill facilities and constricted supply due to wet weather.
But the company’s Pacific Northwest and New Zealand timber segments had to contend with less favorable conditions.
In the Pacific Northwest, pricing dynamics were impacted by the U.S.-China trade dispute and challenging lumber end-markets. In New Zealand, challenges included weaker demand from China and competition from alternative supply sources, particularly Europe, which resulted in lower harvest volumes and declining export sawtimber prices.
Pricing dynamics in the Pacific Northwest and New Zealand continue to be unfavorable relative to Rayonier’s expectations, Nunes said, leading the company to lower its full-year guidance.
CFO Mark McHugh gave further details, saying full-year net income attributable to Rayonier is now anticipated at between US$54 million and $63 million, and adjusted EBITDA at between $245 million and $265 million.
In the Pacific Northwest timber segment, harvest volumes in Q2 were 250,000 tons, down 12% from Q1 and 33% lower year-over-year.
