Deltic Timber Earnings Spike 71% On Lumber Sales
by July 25, 2012 6:11 pm 63 views
Deltic Timber Corp. reported second quarter net income of $3.5 million, up 71% from a year ago when quarterly profits topped $2 million.
The El Dorado-based timber and real estate firm saw revenue jump 15% to $37.1 million for the quarter compared to $32.2 million one year ago.
“The financial performance of Deltic’s diverse assets for the second quarter was encouraging given the continued difficult operating environment that exists,” said CEO Ray Dillon. “The economic leverage of the company’s ownership of efficient sawmills was again evident during the quarter. These sawmills provide a secure market for Deltic’s sustainably managed, valuable timberland assets, and they are well positioned whenever market conditions present opportunities.”
Deltic said part of its strong performance in the second quarter was due to significantly im
proved operating results in its mills segment, “which benefitted from a higher average lumber sales price and an increased lumber sales volume when compared to the same period of 2011.”
Deltic, which sees fluctuating business conditions from the housing and real estate markets, said it would be cautious for the rest of the year.
“Since the economic environment for our businesses continues to be uncertain, we will maintain a defensive posture for the remainder of 2012,” Dillon said.
Deltic also repaid $5.6 million of debt during the second quarter.
With the cash flows generated by these operations, we repaid $5.6 million of debt during the second quarter.
Deltic Timber's stock closed trading Wednesday at $60.12 per share. The company's stock has traded between a low of $46.89 and a high of $76.03 during the past 12 months.