Deltic Timber Corporation reported 25% increase of operating income amid 5.1% sales growth in 1Q2017 y-o-y. According to the announcement, the company’s net sales accounted for USD 53.2 million, generating operating income of USD 4 million in the period.
Mark Leland, Deltic’s Interim President and CEO, commented:
“Deltic continues to benefit from its well-positioned asset base and solid team, which have allowed the Company to improve financial performance over the prior year’s first quarter. Our average sales price for lumber sold increased 10 percent, along with slightly higher sales volumes compared to the first quarter a year ago. Stronger lumber demand and uncertainty over the Canada-U.S. trade dispute and duties favorably impacted our markets. In addition, improved operating metrics at our MDF plant lowered per-unit costs for MDF when compared to last year’s first quarter. As discussed last quarter, we anticipate the facility’s near-term performance will be negatively impacted by worn press chains, which are scheduled to be replaced in the third quarter of this year.
Currently in our Real Estate segment, we are developing new residential lot offerings in our Chenal Valley and Wildwood developments to fulfill demand, and expect to have a successful lot offering in the Wildwood development during the second quarter of 2017. We are also encouraged by the increased interest in commercial properties.
The company’s Woodlands segment increased pine sawtimber harvest three percent to serve strengthening mill demand. Pine chip-n-saw harvest volumes also increased 156 percent over the first quarter of 2016 as the company’s Ola Mill small-log line began to utilize the most efficient blend of small-log resources. The current quarter’s pine pulpwood harvest volume decreased 56,921 tons mainly due to the first quarter 2016 timber deed sales.
Since my appointment as Deltic’s President and Chief Executive Officer, my initial focus has been to evaluate the Company’s assets, competitive position and market risks and opportunities with a goal to develop a strategic vision that is laser focused on achieving strong operational performance, driving shareholder value and delivering best-in-class returns.”
In 4Q2016 Deltic Timber increased operating income to USD 5.6 million.
Earlier Deltic Timber Corporation announced a quarterly dividend to stockholders of record as of March 6, 2017.
About Deltic Timber Corporation:
The company is a natural resources company focused on the efficient and environmentally responsible management of its land holdings. It owns approximately 530,000 acres of timberland, operates two sawmills and a medium density fiber-board plant. It is engaged in real estate development. Headquartered in El Dorado, Arkansas, the Company’s operations are located primarily in Arkansas and north Louisiana.