Deltic Timber Corp. announced today its net income for the second quarter more than quintupled to $5.5 million from $1 million in the year-earlier quarter. Sales rose roughly one-third to $39 million, largely from a near-50% gain in mill-related sales to $29.9 million.
"The economic leverage of Deltic's ownership of efficient lumber manufacturing operations continued to be evident during the second quarter," president and chief executive officer Ray C. Dillon said in a statement. "Our sawmills not only protect the value of our core timberland assets, they also have the potential to generate outstanding income and cash flows for the company whenever market conditions present opportunities. Although the lumber market has now softened from the peak that occurred during the second quarter, we will continue to emphasize hourly productivity rates and other operating efficiencies as we adjust operating hours in our facilities to match production levels with demand."
Deltic's mill segment swung to a $6.2 million operating profit in the second quarter from a $1.9 million loss in the April-June 2009 period, in part because the average lumber sales price jumped 44% to $345 per thousand board feet. Deltic sold 69.8 million board feet, up 6%. In contrast, the woodlands segement's operating profit was unchanged at $6.4 million despite a 10% rise in sales to $11.5 million, and the real estate segment recorded a $500,000 loss--$100,000 worse than a year ago--while sales fell to $2.4 million from a year-earlier $3 million.
Dillon predicted finished lumber production this quarter for the El Dorado, Ark.-based company would total 65 million to 75 million board feet.