Deltic Timber Notes Q2 Construction Rebound

Deltic Timber Corp. reported second quarter profits of $5.3 million, down from $11.27 million one year ago. Sales in the second quarter for El Dorado-based Deltic Timber jumped to $58.61 million, up from $53.25 million one year ago.

Year-ago second quarter net income was influenced by one-time, non-recurring items related to the acquisition of a 50% stake in Deltic’s Del-Tin Fiberboard business. Factoring out non-recurring items, Deltic’s profits in last year’s second quarter were $5.5 million.

Deltic’s President and CEO Ray Dillon said the company’s timber industry saw improvements after a rough first quarter that was impacted by extreme winter weather.

“As the harsh winter conditions that existed during the first quarter subsided, new home construction activity improved. With this, Deltic benefitted from increased sales volumes for both lumber and medium density fiberboard compared to the second quarter of 2013,” said Dillon.

Other highlights of the quarter included:

• Prices for pine sawtimber increased, resulting in improved operating income produced from Deltic’s core Woodlands segment.
• The company’s manufacturing segment continued to generate solid financial results despite rising stumpage prices.
• Deltic’s real estate segment sold a 1.72-acre commercial site in its Chenal Valley development during the quarter for $500,900 per acre. Dillon said there has been interest in other commercial properties in the development.

Shares of Deltic Timber (NYSE: DEL) closed Wednesday at $60.50. The company’s stock has traded between $58.05 and $69.68 per share during the past year.