dropped 7% Tuesday after posting a first-quarter earnings miss.
The Jacksonville, Fla.-based company earned $23.3 million, or 30 cents a share, in the quarter, compared with $34.4 million, or 45 cents a share, a year ago. Analysts were expecting earnings of $26.5 million, or 31 cents a share in the most recent quarter. Results in 2005 were helped by a tax benefit of $9.5 million from an internal revenue service audit settlement.
First-quarter revenue rose marginally 0.7% from a year ago period to $277 million as against analysts' expectation of $286.6 million.
The company expects its second-quarter earnings to be slightly above the first quarter, but somewhat below the 2005 second-quarter's results, excluding special items, mainly because of higher manufacturing costs. Full year earnings are expected to be somewhat above 2005, excluding special items, due to increased real estate transactions.
"We had a good quarter, in line with our expectations, with continued strong demand and prices for U.S. timber and cellulose specialties," the company said. "The second half of the year should be much stronger than the first, particularly due to increased real estate transactions."
First-quarter operating income fell 21.1% from a year ago period to $37.3 million and operating margin declined 373 basis points to 13.5%.
By segment, first-quarter revenue from timber segment rose 4.8% from a year-ago period to $54.4 million, operating income increased 0.4% to $23.8 million. Revenue from real estate segment fell 44.5% to $13.1 million and operating income dropped 33.3% to $10.2 million. Revenue from performance fibers segment rose 2.1% to $146 million and operating income decreased 16.9% to $10.3 million. Revenue from wood products segment rose 3.6% to $31.6 million and operating income declined 18.8% to 42.6 million.
Rayonier slid $3.21 to $41.50.
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