On The Insider: Robert Downey Jr Injured on the Set

Rayonier, Inc. Q4 2007 Earnings Call Transcript

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2008-01-24 18:43:04.0

Tags: Rayonier Inc.

Question-and-Answer Session

Thank you. The question-and-answer session will be conducted electronically. [Operator Instructions]. We will take our first question from Claudia Hueston with JPMorgan.

Claudia Hueston - JPMorgan

Hi, thanks very much. I was just wondering if you could help a little bit about the volumes in the Southeast in the quarter. They were a little bit higher than expected. Just wonder what happened there, what really drove that increase?

Lee M. Thomas - Chairman, President and Chief Executive Officer

Tim.

Timothy H. Brannon - Senior Vice President, Forest Resources

The volumes in the Southeast part of course was due to the fire-related damage that we have, a bit more volume that we picked up as a result of that, and also the push that we had, the good demand that we saw from pulp wood, additional finnings [ph] and pushing product into that market worked out quite well for us. So, that was basically the addition that you saw in the fourth quarter.

Claudia Hueston - JPMorgan

Okay. And then just in terms of the Performance Fibers business and the unplanned downtime there, I think you mentioned that Jesup boilers, you are still persisting, but are the other issues pretty much taken care of there, and is there anyway to sort of quantify the impact of that downtime?

Lee M. Thomas - Chairman, President and Chief Executive Officer

Actually the issues at both mills have been resolved in terms of operational mills, they are both operating quite well. We will during the annual maintenance shut down soon do some additional work on the boilers at both mills. We had planned to do that anyway. As far as quantifying the effect, we did have an effect on both our cellulose specialties and our absorbent materials, and I think it was about 8,000 tons in each, 15,000 to 16,000 tons total.

Claudia Hueston - JPMorgan

Great. That's really helpful. Thanks a lot.

Operator

Thank you. We will take our next question from Chip Dillon with Citi.

Chip Dillon - Citigroup

Yes, good afternoon.

Lee M. Thomas - Chairman, President and Chief Executive Officer

Hello Chip.

Chip Dillon - Citigroup

Hi there. First question is on the fire and drought situation? I know, and by the way if you have addressed this, I apologize. I came a little bit late, but I know there are still tough conditions down in Georgia, Florida in particular. And is this affecting your plan or your ability to get wood out of the forest this year?

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