Daniel Jacome's questions to Rayonier Advanced Materials Inc (RYAM) leadership • Q3 2024
Question
Daniel Jacome of Stifel Financial Corp. inquired about RYAM's equity sensitivity to the slowing Chinese market, any potential benefits from government stimulus, and the current demand environment for ethers in the European construction sector.
Answer
President and CEO De Lyle Bloomquist clarified that while about 20% of sales are exposed to China, the largest portion, acetate, is stable and tied to cigarette consumption, not GDP. He noted some indirect pressure on ethers from Chinese exports but stated the company is defending its market share. Regarding Europe, Bloomquist observed a modest uptick in ethers demand, driven by both inventory restocking and a slight increase in underlying demand. CFO and Senior VP of Finance Marcus Moeltner reinforced that acetate, representing 40% of their China exposure, is very stable.