Posted 7/23/2014 04:52 pm
Updated 3 months ago
Deltic Timber Corp. of El Dorado on Wednesday reported second-quarter net income of $5.3 million or 42 cents per share, down 53 percent from the same time last year.
The timber and real estate company, which owns land in the Chenal Valley development of west Little Rock, reported net income of $11.3 million or 89 cents per share in the same quarter last year.
That quarter included non-recurring gains from Deltic’s acquisition of the remaining 50 percent ownership stake in the Del-Tin Fiber in April 2013 and an involuntary conversion of assets in the company’s manufacturing segment. Excluding the one-time gains, Deltic’s second-quarter net income last year was $5.7 million.
Profits came on net sales of $58.6 million, up 10 percent from $53.2 million in the same quarter last year.
“As the harsh winter conditions that existed during the first quarter subsided, new home construction activity improved,” Ray C. Dillon, president and CEO, said in a news release. “With this, Deltic benefitted from increased sales volumes for both lumber and medium density fiberboard compared to the second quarter of 2013.”
Dillon said prices for pine sawtimber increased during the quarter, resulting in improved operating income from the company’s core Woodlands segment. Sales in Woodlands reached $10.1 million, up from $9.5 million in the same quarter last year.
Dillon also said the firm’s Real Estate segment sold of a 1.72-acre commercial site in Chenal Valley during the quarter for $500,900 per acre. He said Deltic is seeing interest in other commercial properties from “additional potential buyers.” In all, real estate sales reached $3.6 million, down from $3.8 million in the same quarter last year.
The firm’s Manufacturing segment reported sales of $49.2 million, up from $43.7 million in the same quarter last year.