3Q net sales down to $50.1 million compared to $58.3 million in 3Q 2014.
For the first nine months of 2015, net income was $2.8 million, $.22 a share, compared to net income of $16.2 million, $1.28 a share for the first nine months of 2014.
Commenting on the results, President and CEO, Ray C. Dillon, stated, “Deltic’s assets continued to produce positive financial results despite the significant negative impact that weak markets for both lumber and medium density fiberboard had on sales prices for these products manufactured in the Company facilities. While some wood products manufacturers increased their production in anticipation of a stronger U.S. housing market for the second half of 2015, the actual recovery continued to be slower than expected, adding to the downward pressure on lumber prices in the third quarter. In addition, exports of logs and lumber manufactured on the West Coast of the United States to the Far East have decreased. As a result, there was simply more wood-product inventory available in the Company’s primary market areas during the 3Q than required to meet current demand”.
The Woodlands segment reported operating income of $4.5 million for the 3Q 2015, compared to $5 million in 2014’s 3Q, primarily because of reduced timberland sales and decreased oil and gas related income, partially offset by a benefit from income from additional pine sawtimber and pine pulpwood harvested at improved prices.
The Manufacturing segment reported operating income of $2 million for the 3Q 2015, which compares to $9.1 million in 2014’s 3Q. The decrease was primarily due to lower average sales prices for both lumber and MDF. Furthermore, an increased cost for the logs used as raw material in Deltic’s sawmills resulting from the increased pine sawtimber prices, decreased MDF production due to unscheduled plant-maintenance downtime, and higher per-unit manufacturing cost for MDF resulting from the plant downtime and the related unplanned maintenance expenses negatively impacted the segment’s financial results.
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.