NEW YORK (TheStreet) -- Shares of Rayonier Inc. (RYN) are down 12.09% to $29.80 today after the company said it would realign its strategy and restate results for the first half of this year following an internal review of its operations, the Wall Street Journal reports.
The forest-products company said it understated the depletion in the cost of goods sold in its quarterly reports for the periods ended March 31 and June 30 of 2014, according to the Journal. The understatements resulted in corresponding overstatements of income from continuing operations of $1.9 million and $2 million, respectively.
Rayonier also lowered its quarterly dividend to 25 cents a share from 30 cents.
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"Importantly, we believe that reducing our dividend will provide the necessary balance between our near-term financial goals and long-term shareholder interests," CEO David Nunes said.
Separately, TheStreet Ratings team rates RAYONIER INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate RAYONIER INC (RYN) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."