Deltic Sees Rise in 3Q Net Income, Sales

by Jan Cottingham  on Wednesday, Oct. 24, 2012 3:54 pm  

Deltic Timber Corp. of El Dorado on Wednesday reported net income of $3.2 million, or 25 cents per share, on net sales of $36.5 million in third-quarter 2012. That compares with net income of $720,000, or 6 cents per share, on net sales of $31.4 million in third-quarter 2011.

Year to date, the company said, net income was $6.8 million, or 54 cents per share, on net sales of $104.2 million, compared with net income of $2.9 million, or 23 cents per share, on net sales of $93 million for the comparable period in 2011.

The company attributed the rise in income to a $5.1 million improvement in financial results for its mills segment, saying it had benefited from a 28 percent increase in the average price of lumber.

However, Deltic said in a statement, the company also saw a decline in operating income in its woodlands segment and higher corporate and administrative expenses.

"The profitable performance of Deltic's diverse asset base for the third quarter continues to be encouraging given the uncertain economic conditions that exist," President and CEO Ray C. Dillon said.

"The importance of the Company's vertical integration strategy continues to be proven by the economic leverage of our ownership of efficient sawmills, as evidenced by their financial performance during the quarter. With the cash flows generated by these facilities, we repaid another $7 million of debt during the third quarter."

Deltic's real estate segment reported an operating loss of $600,000 million during the third quarter of 2012, compared with an operating loss of $1 million for the same period of 2011. The company sold 20 residential lots during third-quarter 2012, compared with eight lots sold in the comparable quarter of 2011.

The average residential lot sales price was $71,300 in third-quarter 2012, an increase of $13,500 compared with the average lot price of $57,800 in third-quarter 2011.

"The higher average per-lot sales price was a result of the mix of lots sold," Deltic said.

It reported no commercial real estate acreage sales in third-quarter 2012 or third-quarter 2011.



Please read our comments policy before commenting.