CEO: Deltic Timber to focus on selling land during FY08

Deltic Timber Corp. (NYSE:DEL) CEO Ray Dillon said the natural resources company, which grows and harvest timber, will mainly focus on closing sales of commercial land. Residential real estate and lumber markets are predicted to remain depressed for the remainder of 2008, he said.

“We also anticipate that some of the commercial acres being sought after by potential buyers will close in 2008,” Dillon said. “However, as we have said before, the predictability of this type of sale is very difficult and their timing tends to be very sporadic.”

Another area of focus for 2008 will be the sale of hardwood timberland acres, the chief executive officer said. Proceeds from these sales will be used to purchase pine timber land, he said.

Dillon said 2008 will be a year of challenges, given the current business environment.

“The year could also present some unique opportunities and we will be focused on recognizing and capitalizing on any such opportunities as they arrive,” Dillon said.

During the first quarter, CFO Kenneth Mann said Deltic Timber capitalized on a current customer interest in recreational land. Deltic sold 674 acres for about $2,100 per acre or approximately $1.4 million during the quarter, the chief . . .

For access to the full article, you must be a registered member - it's FREE.

Already a member? Please log in below