by Lance Turner
Posted 7/24/2013 03:38 pm
Updated 8 months ago
Deltic Timber Corp. of El Dorado on Wednesday said the acquisition of the rest of Del-Tin Fiber LLC pushed its second-quarter net income up 220 percent to $11.2 million, or 89 cents per share.
The timber and real estate company said the $7.7 million income boost came from including Del-Tin Fiber's operating income in results and $5.2 million of non-operating, after-tax gains that came as result of purchasing the remaining half of Del-Tin on April 1.
The company also cited a higher average sales price for lumber and improved results in all three of its operating segments.
"The timing of our Del-Tin Fiber acquisition has proved to be very beneficial," Ray C. Dillon, president and CEO, said in a news release. "The medium density fiberboard market strengthened during the second quarter, resulting in improved sales prices. As a result of these factors, our commitment to a strategy of vertical integration continued to be beneficial to the financial performance of the company for the quarter."
Deltic said its manufacturing segment reported operating income of $10.2 million, up $4.5 million from the same period of 2012.
Cited increased residential lot sales, the company's real estate segment swung from a loss to profit, with operating income of $200,000, up from an operating loss of $300,000 during the same time last year.
In all, there were 22 residential lots sold in the second quarter of 2013, double what were sold during the same time last year. Average per-lot sales price was $76,900, up from $68,000.
Deltic said it expects residential lot sales to be between 10 to 15 for the third quarter and 50 to 60 for the full year.
"Even as commercial acreage within Chenal Valley continues to receive interest from potential buyers, it is difficult for the company to predict the timing of closings of any commercial real estate transactions due to their highly uncertain nature and volatility," Dillon said.