Deltic Timber Corp. of El Dorado said Wednesday that first-quarter profit spiked 175 percent amid higher prices for lumber and medium density fiberboard.
The publicly traded lumber and real estate company (NYSE: DEL) reported quarterly net income of $1.1 million, up from $395,000 in the same quarter last year. Diluted earnings per share came in at 9 cents, up from 3 cents last year.
The profit came on revenue of $53.2 million, up 5 percent from last year.
In its earnings release, the company attributed the results primarily to a rise in operating income in manufacturing division, which saw higher prices for lumber and MDF, an increased volume of lumber sales and improved operating performance at its MDF plant.
"Deltic continues to benefit from its well-positioned asset base and solid team, which have allowed the company to improve financial performance over the prior year's first quarter," John D. Enlow, president and CEO, said in a news release. "Our average sales price for lumber sold increased 10 percent, along with slightly higher sales volumes compared to the first quarter a year ago."
Enlow also said "uncertainty over the Canada-U.S. trade dispute and duties favorably impacted our markets."
Last week, the U.S. Commerce Department announced it would put a 20 percent tariff on most Canadian softwood lumber imports, the latest salvo in a long-running dispute between the U.S. and Canada. Tariffs on imported lumber could be good for U.S. manufacturers, which could raise prices.
During the quarter, the company's manufacturing division posted operating income of $4 million, up from $3.3 million in the same quarter last year, and net sales of $47 million, up from $43.8 million last year.
The company's woodlands division posted operating income of $5.2 million, down from $5.3 million last year, and net sales of $10.9 million, up from $10.5 million last year.
The real estate division posted an operating loss of $900,000, up from a loss of $600,000 last year, and net sales of $1.3 million, down from $2.2 million last year.
Enlow has been CEO since March 8. The former Weyerhaeuser vice president took over for D. Mark Leland, who led the company on an interim basis after long-time leader Ray Dillon retired last year.