Tag - DEL

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 . . .

Small-cap stocks are expected to open slightly lower Tuesday, in line with mild declines in after-hours trading. The Russell 2000 (NYSE:IWM) was down about 0.3% overnight, which would translate to a cash opening near 716. Look for initial support for the Russell this morning at 714, then at 709 and 705. On the upside, resistance remains near 724, then at 731.

The market’s pullback Tuesday was confined to an inside session move, and was consistent with a mild overbought correction. As long as the market doesn’t sink through 709, it won’t endanger the advance from late last week.

Stock indices around the world were narrowly mixed overnight, with Japan’s Nikkei down 1%, Hong Kong’s Hang Seng up 0.8% and Europe markets slightly mixed depending on the nation. The U.S. dollar was flat to soft overnight, crude oil remained bid amid strife in producing country Nigeria, a refinery strike in Scotland . . .

Deltic Timber Corp. (NYSE: DEL) CEO Ray Dillon said the depressed residential housing market will continue throughout the remainder of 2007, well into 2008 and maybe early 2009. Dillon made the comments during a midday conference call.

“Deltic’s reported net income for the third quarter of 2007 was largely impacted by the depressed environment that exists for our lumber and real estate market,” Dillon said. “I am pleased to report positive financial results despite these difficult operating conditions.”

After Monday’s close, the El Dorado, Ark.-based company, which harvests and markets lumber, reported third-quarter sales of $25.5 million, down 42% from $43.7 million a year earlier. Deltic’s quarterly net income plunged 96% to $0.25 million, from $6.4 million during the same period of 2006.

“With the current short-term market outlook for the residential real estate and lumber markets, operating in forest products and real estate development business will be very challenging for some time,” the chief executive said. “We will continue to maximize sales realizations where possible while concentrating on being even more efficient and cost conscious than ever before in order to weather this period.”

A fire at a southern Arkansas mill during August caused Deltic to halt operations. Dillon said the firm’s insurance policy will cover any lost business and damage resulting from the fire.

“The mill’s segment operations for the quarter were greatly affected by this fire, as it caused us to temporarily suspend production,” Dillon said. “The expected property damage proceeds could exceed the book value of the assets damaged in the fire and related cleanup costs by over $1 million.”