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Rayonier Profit Falls

TSC and IRIS Staff

Rayonier(RYN Quote) said its third-quarter earnings fell 26.7% from the year-ago period.

The Jacksonville, Fla.-based company earned $55 million, or 70 cents a share, in the quarter, compared with $75 million, or 96 cents a share, a year ago. Adjusted for special item gain of $5.3 million, or 7 cents a share, for prior years' IRS audit settlements, earnings were 63 cents a share. Analysts polled by Thomson First Call were expecting earnings of 55 cents a share in the most recent quarter.

Third-quarter revenue rose 4.2% from a year ago to $312 million. Analysts were expecting revenue of $315 million.

The company expect its 2006 earnings to be above 2005. Fourth quarter results are forecasted to be less than third quarter, excluding special items, primarily due to lower real estate sales.

"As expected, results were very good, reflecting the balance of our three core businesses. Particularly strong results were achieved by Performance Fibers, which continues to experience growing demand for its high-value cellulose specialties, and our Real Estate business, which closed several significant transactions - including our first participation agreement. In addition to realizing immediate proceeds from the sale, the agreement allows us to share in future revenues generated from the developed property," the company said.

Shares of the company were trading up 37 cents, or 0.9%, to $39.96 Tuesday.