Deltic Timber Corporation saw last year’s US$6.6m first quarter profit drop to a US$4m loss this year.
The El Dorado, Arkansas-based timber and real estate development business attributed the downturn to a combination of a lower pine sawtimber harvest, falling prices and the slump in the US housing market.
“Difficult conditions existed for both our lumber manufacturing and residential real estate operations,” said chief executive Ray Dillon.
Detailing the figures, Mr Dillon said that Deltic’s pine harvest fell from 180,374 tons in the first quarter of 2007 to 56,451 tons this year. The pine sawtimber price fell 11%, and finished lumber 18%. The company’s mill operations’ losses doubled to US$4.4m.
