US-based cellulose fibre producer Rayonier has reported second quarter net income of $33.3 million compared with $35.1 million the in first quarter of 2007 and $42.9 million in the second quarter of 2006. This includes a charge of $10.1 million related to forest fires in Southeast Georgia and Northeast Florida. In the second quarter of 2006, the company received a special item gain of $6.5 million.

Sales of $300 million for the second quarter were comparable to first quarter 2007 but $12 million below second quarter 2006.

For the performance fibre sector, sales and operating income of $168 million and $31 million, respectively, were $1 million and $4 million above first quarter results, primarily due to increased prices. Compared with the second quarter of 2006, sales and operating income improved $2 million and $15 million, respectively, reflecting higher cellulose specialty prices.

Chairman, president and CEO Lee Thomas said: "The strength of our performance fibres business should more than offset the impact of the housing slowdown on timber prices.”