Deltic Timber Corporation reported 24.3% decrease of operating income amid 2.5% sales decrease in 2Q2017 y-o-y. According to the announcement, the company’s net sales accounted for USD 55.4 million, generating operating income of USD 6.3 million in the period.
John D. Enlow, Deltic’s President and CEO, commented:
“Deltic continues to make progress to sharpen our focus on relentless execution and increase shareholder value.
The Woodlands segment continued to see favorable sawlog demand and benefited from increased pulpwood and chip-n-saw harvests, despite the impact of wet weather conditions in our operating areas during the quarter. Pricing across pulpwood and chip-n-saw grades remained relatively stable, with modest increases in sawlog pricing compared to the same quarter last year.
In Manufacturing, our average sales price for lumber sold increased 5% with continued favorable demand. As expected, the medium density fiberboard (“MDF”) plant continued to be adversely impacted during the second quarter 2017 due to worn press chains, which are scheduled to be replaced in August of this year. MDF demand remained strong, with sales mix affected by less thin board production because of current press operational constraints.
In our Real Estate segment, we had strong demand for the residential lot offering in our Wildwood development with 69 lots placed under contract, and all are scheduled to close by end of third quarter. We expect to have an additional 104 lots available at various price points in the Chenal Valley and Wildwood developments during the second half of
2017. We also sold a 7.9-acre commercial site during the quarter and remain encouraged by increased interest in our commercial properties.
We made significant progress during the quarter evaluating Deltic’s assets, competitive position, and market risks and opportunities and are now assessing a comprehensive range of strategic alternatives. We remain committed to developing and communicating in a timely fashion a strategic direction that is laser focused on achieving strong operational performance, driving shareholder value and delivering best-in-class returns.”
In 1Q2017 Deltic Timber Corporation reported 25% increase of operating income amid 5.1% sales growth
Earlier Deltic Timber’s President and CEO steped down.
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.