The weakened demand for these wood products was primarily caused by wet weather conditions in the Company’s primary market areas that resulted in reduced demand for building products and thus, reduced sales volumes and lower average sales prices for lumber and MDF.
Net cash provided by operating activities was $5.4 million for 2015’s 2Q, compared to $11.1 million in the 2Q 2014.
For the first six months of 2015, net income was $2.7 million, compared to net income of $10.2 million for the first six months of 2014. Net cash provided by operating activities was $14.6 million for the first half of 2015 compared to $14.8 million for the same period of 2014.
Commenting on the results, President and CEO, Ray C. Dillon, stated, “The Company’s financial performance for the quarter was significantly affected by the negative impact of both a slower-than-expected recovery of the single-family residential housing market in the United States and wet weather conditions that slowed construction activity and resulted in weak demand for wood products. At Del-Tin Fiber, we completed the repair of the damage caused by the fire that occurred there in March and restarted MDF production. We also accomplished the settlement of the insurance claims under both the property damage and business interruption policies maintained by the plant, and we recorded the positive financial impact of these settlements during the quarter. In the Company’s real estate development operations, we had a successful offering of the second phase in our Wildwood Place development with 28 of 43 lots offered for sale either closed or under contract and scheduled to close by the end of the third quarter. We are also currently developing additional lots in our Chenal Valley development to be offered later this year.”
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.
