story from Talk Business, a TCW content partner
El Dorado-based Deltic Timber Corp. reported first quarter profits of $6.77 million, a huge jump from a $97,000 profit one year ago.
Deltic’s manufacturing segment reported operating income of $11.3 million, an increase of $9.7 million from the previous year as the lumber market continued to show steady improvement.
“Deltic’s portfolio of diverse assets continued to perform well in the first quarter of 2013, as indicated by the financial results reported,” said CEO Ray Dillon. “The improved housing market resulted in increased sales prices for both lumber and medium density fiberboard. As a result, both the financial performance of the company’s manufacturing segment and our equity in Del-Tin Fiber’s earnings improved significantly.”
In February, Deltic Timber entered into an agreement to purchase the 50% membership interest in Del-Tin Fiber, LLC owned by TIN, Inc., a wholly owned subsidiary of International Paper Company’s Temple-Inland Inc. The transaction was valued at $20 million.
“On April 1, Deltic successfully completed the acquisition of the other half of the ownership of Del-Tin Fiber from its joint venture partner as previously announced on February 13, 2013. As a result, we will now operate and report it as a consolidated subsidiary, as part of the Manufacturing segment, in succeeding quarters.”