Rayonier Advanced Materials Inc. reported income from continuing operations for the 3Q ended September 26, 2020 of $29 million or $0.45 per diluted share, compared to a loss from continuing operations of $14 million or $0.29 per diluted share for the same prior year quarter.
3Q 2020 sales up 1.9% to $424 million amid lower cellulose, newsprint, paper pulp, paperboard sales.
The operating loss for the three months ended September 26, 2020 increased by $5 million when compared to the same prior year quarter primarily from the impact of an insurance recovery in the prior year and unfavorable foreign currency impacts, partially offset by lower costs in the current period.
“Driven by strong lumber prices, better reliability in High Purity Cellulose and an ongoing focus of reducing costs, 3Q results were positive,” said Paul Boynton, President and CEO. “Despite the challenges brought on by COVID-19, the organization capitalized on near-term opportunities and is starting to see signs of an economic recovery in viscose and high-yield pulp markets.”
Year-to-date net loss from continuing operations for the nine months ended September 26, 2020 was $9 million, or $0.14 per diluted common share, compared to a net loss of $62 million, or $1.36 per diluted common share for the same prior year period. The decrease in the diluted loss per share was due to the significant improvements in Forest Products as well as from the conversion of the company’s preferred stock into approximately 13 million shares of common stock in August of 2019.
The operating loss for the nine months ended September 26, 2020, improved $3 million when compared to the same prior year period primarily due to overall reduced spending and a favorable change in the foreign exchange rates, partially offset by higher non-cash amortization of technology costs in the current period and the impact of an insurance recovery in the prior year.
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.
Source: Lesprom Network