Deltic Timber Corporation announced that net income for the 3Q 2013 was $5.9 million, $.46 a share, compared to $3.2 million, $.25 a share, in the 3Q 2012. The $2.7 million increase was primarily due to improved financial results for Deltic’s Manufacturing segment, as the company said in the press release received by Lesprom Network.
Operating income for the Manufacturing segment was $5.8 million higher in 2013’s 3Q than in the same period a year ago, as a result of a higher average sales price for an increased volume of lumber sold combined with a benefit from consolidation of Del-Tin Fiber L.L.C. which impacted operating income by $2.4 million.
Net cash provided by operating activities was $13.7 million for the 3Q 2013, compared to $9.5 million for 2012’s 3Q.
For the first nine months of 2013, net income was $23.9 million, $1.88 a share, which compares to $6.8 million, $.54 a share, for the same period in 2012. Net cash provided by operating activities was $34 million for the nine-month period ended September 30, 2013 compared to $21 million for the first nine months of 2012.
Commenting on the results, President and CEO, Ray C. Dillon, stated, “Deltic’s commitment to a vertical integration strategy, consisting of owning pine timberland and operating efficient wood products manufacturing facilities, continues to serve the Company well in a balanced and profitable way. This was evidenced by the financial performance of the Company for the quarter. The additional cash flow from operations allowed us to fund our capital program, pay the increased quarterly dividend, repurchase $2.2 million of our stock, and repay $6 million of debt during the 3Q.”
The Woodlands segment’s operating income for the 3Q 2013 was $3.9 million, a decrease of $.8 million when compared to operating income of $4.7 million for the same period of 2012. The Company’s pine sawtimber harvest level during the current quarter of 2013 was 161,132 tons, an 8% decrease from 2012’s 3Q harvest level of 175,515 tons, due to timing.
Deltic plans for the 2013 sustainable-yield harvest volume to be approximately the same as the 607,000 tons harvested in 2012. The average per-ton sales price for pine sawtimber was $21 per ton for the third quarters of both 2013 and 2012. The Company’s pine pulpwood harvest during the 3Q of the current year was 96,519 tons compared to 107,494 tons in the 3Q 2012.