Rayonier's 3Q Profit More Than Doubles

JACKSONVILLE, Fla. (AP) — Timber company Rayonier Inc. said Tuesday its third-quarter profit more than doubled as a huge federal tax credit helped offset weaker lumber revenue.

Net income jumped to $81.1 million, or $1.01 per share, from $28.9 million, or 36 cents per share, in the year-earlier period.

However, excluding one-time items like the 61 cents per share Rayonier received from a big federal tax credit, the company earned an adjusted 40 cents per share.

Analysts surveyed by Thomson Reuters expected, on average, earnings per share of 41 cents per share. Such expectations typically exclude one-time items such as big tax credits.

Sales declined to $300.6 million from $317.5 million. Analysts expected revenue of $293.5 million.

Besides the $49 million alternative fuels tax credit, Rayonier also posted higher prices for its specialty wood fibers and increased rural property sales, which helped offset the effect of the housing slump on lumber sales.

The company's liquidity remained strong during the quarter.

"We generated solid cash flows in the third quarter as strong performance fibers sales and continued interest in our rural properties helped offset the negative impact of the housing market on our timber segment," CEO Lee M. Thomas said.

In midday trading, shares rose 8 cents to $43.23.