Deltic Timber remains in the black

Deltic Timber squeaked out a small first quarter profit of $97,000 despite a tough, but improving, real estate environment.

The El Dorado-based real estate and timber group posted the first quarter net income figure on revenue of $30.64 million. One year ago, Deltic posted a $92,000 profit on sales of $29.4 million.

“I am pleased to report that Deltic’s solid assets generated profitable results despite the continued negative impact on our businesses caused by the weak housing market,” said CEO Ray Dillon.

The company’s mills segment, which is affected by lumber market conditions,  increased operating income thanks to drier weather conditions.

Dillon also said he sees improvement on the horizon in home sales in Deltic’s lucrative Chenal Valley development, but offered little comment on commercial lot sales, which showed no closings in the first quarter.

“We are also beginning to see a slight increase in residential lot sales activity in our Chenal Valley development, as a result of low interest rates combined with improved credit availability from area banks,” he said.

“Residential lot sales are estimated at five to ten lots and 25 to 35 lots for the second quarter and year of 2012, respectively,” said Dillon. “Even though commercial acreage in Chenal Valley receives interest, due to the volatile nature of commercial real estate transactions and the significant number of factors related to any sale, it is difficult to anticipate future closings.”

Oil and gas lease rentals and net royalty income totaled $1.4 million during the current period of 2012 compared to $1.6 million during 2011’s same quarter, the company reported. Deltic leases land throughout the Fayetteville Shale region and in the Brown Dense Formation of south Arkansas.

Deltic Timber (NYSE: DEL) shares closed trading on Monday at $60. The company’s stock has ranged from a low of $46.89 to a high of $76.03 during the past year.