Deltic Timber Corporation announced that net income for the 3Q 2016 was $1.5 million, compared to net income of $.1 million for the 3Q 2015. The improved results were primarily due to increased operating income from Deltic’s Manufacturing segment, resulting from an increased average sales price for lumber, combined with a lower per-unit manufacturing cost for the medium density fiberboard (“MDF”) sold during the 3Q 2016; partially offset by increased Corporate general and administrative expense for incentive plan cost and professional fees.
For the first nine months of 2016, net income was $6.1 million, compared to net income of $2.8 million for the first nine months of 2015.
Net cash provided by operating activities for 2016’s third quarter was $8.3 million, compared to $9 million in the 3Q 2015.
For the nine months ended September 30, 2016, net cash provided by operating activities was $28.3 million compared to $23.6 million for the first nine months of 2015.
Commenting on the results, “Deltic delivered another solid quarter of operating and financial results driven by its exceptional asset base and people,” said interim President and CEO, D. Mark Leland. “We continued to capitalize on an improved lumber market while maintaining our market share. Average sales price on lumber sales in the Manufacturing segment was 17% higher when compared to this time last year. In addition, both operating and financial performance at our MDF plant continued to improve as a result of our team’s successful efforts to reduce unscheduled downtime and associated unplanned maintenance expense.
“Progress continues on the new small-log line at our Ola Mill and it is expected to be operational in December, allowing us to optimize smallwood harvested in our plantation thinning operations. We harvested more pine sawtimber during the third quarter and are on track to achieving our annual harvest plan in the Woodlands segment. Even though the pine pulpwood harvest increased 41%, prices have softened.”
Deltic Timber Corporation is a natural resources company focused on the efficient and environmentally responsible management of its land holdings. The Company owns approximately 530,000 acres of timberland, operates two sawmills and a medium density fiberboard plant, and is engaged in real estate development.
