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Deltic Timber 3Q Profit Sees Slight Bump

2 min read

Deltic Timber Corp. of El Dorado announced on Wednesday an increase in net income in third-quarter 2014 to $6 million, or 47 cents a share, compared with $5.9 million, 46 cents a share, in third-quarter 2013.

The company cited better business in its woodlands and real estate segments along with the benefit of a lower effective income tax rate. These advantages, however, were partially offset by reduced operating income from Deltic’s manufacturing segment because of maintenance costs and downtime at its medium density fiberboard plant.

“Deltic’s assets continued to produce solid financial results during the third quarter, as the company reported favorable net income to the third quarter of last year as well as the second quarter of 2014,” Deltic CEO Ray C. Dillon said in a statement.

Dillon also said that higher prices for pine saw timber compared with last year and that the company had “capitalized on the opportunity” to sell some timberland for a good price.

“At Del-Tin Fiber, we performed a scheduled maintenance outage during the quarter, as we continue to focus on improving productivity and plant uptime there,” he said. “In our Real Estate segment, we had a successful lot offering in a new small-lot neighborhood that is very near to our Chenal Valley development, and we also continue to see increased interest in our commercial acreage there.

“With the excess cash flows generated by our businesses during the third quarter, we repurchased 68,581 shares of the Company’s common stock and repaid $5 million of the debt we incurred to acquire timberland acreage earlier in 2014,” Dillon said.

 

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