by Gwen Moritz
Posted 4/21/2014 03:43 pm
Updated 4 months ago
Harsh winter weather conditions are being blamed for a 27.5 percent decrease in first-quarter profits at Deltic Timber Corp. of El Dorado, despite a 33.2 percent increase in revenue.
The publicly traded company reported net income of $4.9 million, or 39 cents per share, for the first three months of 2014, compared with 6.8 million, or 53 cents per share, for the same period in 2013. Total sales reached $55.4 million, up from $41.6 million a year earlier.
Persistent winter weather conditions throughout the country resulted in decreased sales and lower prices for Deltic's lumber manufacturing segment, the company said in announcing the quarterly results. Sales of finished lumber were down about 9.5 percent and the average price was down 6 percent. As a result, the manufacturing segment's operating income was $8.3 million during the quarter, down from $11.3 million in the same quarter of 2013.
The timber segment had operating income of $5.3 million, up from $4.6 million in the first quarter of last year, thanks to a 16 percent increase in the harvest of pine sawtimber. The average price on the sawtimber was up 4 percent.
The company's real estate segment — primarily sales of residential lots in the Chenal Valley area of west Little Rock — improved dramatically in the first quarter. Twenty-three lots were sold at an average price of $88,900, compared with 12 lots averaging $74,400 in the first quarter of 2013. Deltic, led by CEO Ray Dillon, is predicting eight to 12 lots sales in the second quarter and 60 to 80 for the year.
Deltic managers will hold a conference call at 10 a.m. on Tuesday. It will be webcast live at Deltic.com.