Rayonier Q4 Profit Rises, Tops View; Performance Fibers Business To Be Spun Off

(RTTNews) - Rayonier Inc. (RYN) reported fourth quarter 2013 net income attributable to shareholders of $79.7 million or $0.62 per share, up from $75.6 million, or $0.59 per share, in the prior year period. Analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share. Analysts' estimates typically exclude special items.

Pro forma net income per share for the quarter grew to $0.64 from last year's $0.57.

Sales for the quarter rose to $520.2 million from $412.7 million in the prior year quarter. Six analysts had consensus revenue estimate of $441.59 million for the quarter.

In a separate press release, Rayonier Inc. announced that it intends to separate its Performance Fibers business from its Forest Resources and Real Estate businesses. The separation will result in two independent, publicly-traded companies by means of a tax-free spin-off of the Performance Fibers business to Rayonier shareholders. The separation is expected to be completed in mid-2014.

" As part of our strategic planning process, we began in-depth analysis and preparation for the business separation almost two years ago. With an improving U.S. housing market, strong timber export markets, and the successful expansion of our cellulose specialties capacity, we concluded that now is the optimal time to pursue the separation of these two non-integrated businesses," said Paul Boynton, Chairman, President and CEO.

Upon completion of the separation, Boynton will become Chairman, President and CEO of the Performance Fibers company, and Hans Vanden Noort, CFO, will remain CFO of Rayonier. The current business unit leaders will continue in their roles with Lynn Wilson, EVP Forest Resources and Chris Corr, SVP Real Estate at Rayonier and Jack Kriesel, SVP Performance Fibers at the Performance Fibers company.

In addition, each company will have its own separate board of directors. The current Rayonier board membership will be assigned to the board of one of the two companies. Richard Kincaid will serve as chairman of the Rayonier board and David Brown will be the lead director of the new Performance Fibers company board. Boynton will be working with the Rayonier board over the coming months to identify the CEO of Rayonier as well as the additional board members for each company.

Following completion of the transaction, each company is expected to be listed on the New York Stock Exchange.