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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549



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FORM 10-Q



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(Mark One)

|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------



For the quarterly period ended March 31, 2005



OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------



Commission file number 1-12147



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DELTIC TIMBER CORPORATION

(Exact name of registrant as specified in its charter)



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|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Delaware                                                       |  | 71-0795870                             
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification Number)
|                                                               | 
|210 East Elm Street, P. O. Box 7200, El Dorado, Arkansas       |  | 71731-7200                             
|(Address of principal executive offices)                       |  | (Zip Code)                             



Registrants
telephone number, including area code: (870) 881-9400



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Securities registered pursuant to Section 12(b) of the Act:



|                                                                  |  |                                          
|----------------------------------------------------------------- |  | -----------------------------------------
|Title of each class                                               |  | Name of each exchange on which registered
|Common Stock, $.01 Par Value                                      |  | New York Stock Exchange, Inc.            
|                                                                  | 
|Series A Participating Cumulative Preferred Stock Purchase Rights |  | New York Stock Exchange, Inc.            



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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes  x    No ̈.



Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes  x    No ̈.



Number of shares of Common Stock, $.01 Par Value, outstanding at March 31, 2005, was 12,249,119.



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##### Table of Contents



TABLE OF CONTENTS - FIRST QUARTER 2005 FORM 10-Q REPORT



|                               |  |                                                                                       |  |           
|------------------------------ |  | ------------------------------------------------------------------------------------- |  | ----------
|                               |  |                                                                                       |  | PageNumber
|PART I - Financial Information |  |                                                                                      
|                               |  |                                                                                      
|Item 1.                        |  | Financial Statements                                                                  |  | 3         
|                               |  |                                                                                      
|Item 2.                        |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 15        
|                               |  |                                                                                      
|Item 3.                        |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 25        
|                               |  |                                                                                      
|Item 4.                        |  | Controls and Procedures                                                               |  | 25        
|                               | 
|PART II - Other Information    |  |                                                                                      
|                               |  |                                                                                      
|Item 1.                        |  | Legal Proceedings                                                                     |  | 26        
|                               |  |                                                                                      
|Item 2.                        |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |  | 26        
|                               |  |                                                                                      
|Item 3.                        |  | Defaults Upon Senior Securities                                                       |  | 26        
|                               |  |                                                                                      
|Item 4.                        |  | Submission of Matters to a Vote of Security Holders                                   |  | 26        
|                               |  |                                                                                      
|Item 5.                        |  | Other Information                                                                     |  | 26        
|                               |  |                                                                                      
|Item 6.                        |  | Exhibits                                                                              |  | 26        
|                               | 
|Signatures                     |  | 27                                                                                   



2



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##### Table of Contents



PART I - FINANCIAL INFORMATION



Item 1.
Financial Statements



DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Consolidated Balance
Sheets

(Thousands of dollars)



|                                                                                 |  |               |         |   |              |         |  
|-------------------------------------------------------------------------------- |  | ------------- | ------- | - | ------------ | ------- | -
|                                                                                 |  | March 31,2005 |         |   | Dec. 31,2004 |        
|                                                                                 |  | (unaudited)   |         |   |              |        
|Assets                                                                           |  |               |         |   |              |         |  
|Current assets                                                                   |  |               |         |   |              |         |  
|Cash and cash equivalents                                                        |  | $             | 3,660   |   |              | 859     |  
|Trade accounts receivable                                                        |  |               | 6,672   |   |              | 6,508   |  
|Allowance for doubtful accounts                                                  |  |               | (20     | ) |              | (26     | )
|Other receivables                                                                |  |               | 22      |   |              | 23      |  
|Inventories                                                                      |  |               | 6,080   |   |              | 5,566   |  
|Prepaid expenses and other current assets                                        |  |               | 1,458   |   |              | 1,786   |  
|                                                                                 |  |               |         |   |              |         |  
|Total current assets                                                             |  |               | 17,872  |   |              | 14,716  |  
|Investment in real estate held for development and sale                          |  |               | 36,681  |   |              | 37,418  |  
|Investment in Del-Tin Fiber                                                      |  |               | 5,425   |   |              | 3,858   |  
|Investments and noncurrent receivables                                           |  |               | 1,890   |   |              | 1,829   |  
|Timber and timberlands - net                                                     |  |               | 216,123 |   |              | 214,710 |  
|Property, plant, and equipment - net                                             |  |               | 36,983  |   |              | 35,767  |  
|Deferred charges and other assets                                                |  |               | 630     |   |              | 689     |  
|                                                                                 |  |               |         |   |              |         |  
|Total assets                                                                     |  | $             | 315,604 |   |              | 308,987 |  
|                                                                                 |  |               |         |   |              |         |  
|Liabilities and Stockholders Equity                                             |  |               |         |   |              |         |  
|Current liabilities                                                              |  |               |         |   |              |         |  
|Current maturities of long-term debt                                             |  | $             | 32      |   |              | 32      |  
|Trade accounts payable                                                           |  |               | 3,475   |   |              | 4,080   |  
|Accrued taxes other than income taxes                                            |  |               | 1,566   |   |              | 1,293   |  
|Income taxes payable                                                             |  |               | 1,536   |   |              |        |  
|Deferred revenues and other accrued liabilities                                  |  |               | 3,613   |   |              | 3,467   |  
|                                                                                 |  |               |         |   |              |         |  
|Total current liabilities                                                        |  |               | 10,222  |   |              | 8,872   |  
|Long-term debt                                                                   |  |               | 89,016  |   |              | 85,724  |  
|Deferred tax liabilities - net                                                   |  |               | 14,016  |   |              | 14,351  |  
|Guarantee of indebtedness of Del-Tin Fiber                                       |  |               | 3,105   |   |              | 3,278   |  
|Other noncurrent liabilities                                                     |  |               | 11,655  |   |              | 11,343  |  
|Stockholders equity                                                             |  |               |         |   |              |         |  
|Cumulative preferred stock - $.01 par, authorized 20,000,000 shares, none issued |  |               |        |   |              |        |  
|Common stock - $.01 par, authorized 50,000,000 shares, 12,813,879 shares issued  |  |               | 128     |   |              | 128     |  
|Capital in excess of par value                                                   |  |               | 72,085  |   |              | 71,483  |  
|Retained earnings                                                                |  |               | 130,298 |   |              | 128,516 |  
|Unamortized restricted stock awards                                              |  |               | (2,061  | ) |              | (924    | )
|Treasury stock                                                                   |  |               | (12,848 | ) |              | (13,772 | )
|Accumulated other comprehensive income                                           |  |               | (12     | ) |              | (12     | )
|                                                                                 |  |               |         |   |              |         |  
|Total stockholders equity                                                       |  |               | 187,590 |   |              | 185,419 |  
|                                                                                 |  |               |         |   |              |         |  
|Total liabilities and stockholders equity                                       |  | $             | 315,604 |   |              | 308,987 |  
|                                                                                 |  |               |         |   |              |         |  



See
accompanying notes to consolidated financial statements.



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##### Table of Contents



DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Consolidated
Statements of Income (Unaudited)

Three Months Ended March 31,

(Thousands of dollars, except per share amounts)



|                                                             |  |      |        |   |      |        |  
|------------------------------------------------------------ |  | ---- | ------ | - | ---- | ------ | -
|                                                             |  | 2005 |        |   | 2004 |       
|Net sales                                                    |  | $    | 39,435 |   |      | 27,811 |  
|                                                             |  |      |        |   |      |        |  
|Costs and expenses                                           |  |      |        |   |      |        |  
|Cost of sales                                                |  |      | 26,822 |   |      | 18,197 |  
|Depreciation, amortization, and cost of fee timber harvested |  |      | 2,957  |   |      | 2,913  |  
|General and administrative expenses                          |  |      | 3,324  |   |      | 2,809  |  
|                                                             |  |      |        |   |      |        |  
|Total costs and expenses                                     |  |      | 33,103 |   |      | 23,919 |  
|                                                             |  |      |        |   |      |        |  
|Operating income                                             |  |      | 6,332  |   |      | 3,892  |  
|Equity in Del-Tin Fiber                                      |  |      | (715   | ) |      | (234   | )
|Interest income                                              |  |      | 25     |   |      | 58     |  
|Interest and other debt expense                              |  |      | (1,403 | ) |      | (1,583 | )
|Other income/(expense)                                       |  |      |       |   |      | (4     | )
|                                                             |  |      |        |   |      |        |  
|Income before income taxes                                   |  |      | 4,239  |   |      | 2,129  |  
|Income taxes                                                 |  |      | (1,692 | ) |      | (854   | )
|                                                             |  |      |        |   |      |        |  
|Net income                                                   |  | $    | 2,547  |   |      | 1,275  |  
|                                                             |  |      |        |   |      |        |  
|Earnings per common share                                    |  |      |        |   |      |        |  
|Basic                                                        |  | $    | .21    |   |      | .11    |  
|Assuming dilution                                            |  | $    | .21    |   |      | .11    |  
|Dividends declared per common share                          |  | $    | .0625  |   |      | .0625  |  
|                                                             |  |      |        |   |      |        |  
|Average common shares outstanding (thousands)                |  |      | 12,227 |   |      | 12,021 |  
|                                                             |  |      |        |   |      |        |  



See
accompanying notes to consolidated financial statements.



4



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##### Table of Contents



DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Consolidated
Statements of Cash Flows (Unaudited)

Three Months Ended March 31,

(Thousands of dollars)



|                                                                                            |  |      |        |   |      |        |  
|------------------------------------------------------------------------------------------- |  | ---- | ------ | - | ---- | ------ | -
|                                                                                            |  | 2005 |        |   | 2004 |       
|Operating activities                                                                        |  |      |        |   |      |        |  
|Net income                                                                                  |  | $    | 2,547  |   |      | 1,275  |  
|Adjustments to reconcile net income to net cash provided/(required) by operating activities |  |      |        |   |      |        |  
|Depreciation, amortization, and cost of fee timber harvested                                |  |      | 2,957  |   |      | 2,913  |  
|Deferred income taxes                                                                       |  |      | (229   | ) |      | 356    |  
|Real estate costs recovered upon sale                                                       |  |      | 1,923  |   |      | 1,338  |  
|Timberland costs recovered upon sale                                                        |  |      |       |   |      | 64     |  
|Equity in Del-Tin Fiber                                                                     |  |      | 715    |   |      | 234    |  
|Net increase/(decrease) in provisions for pension and other postretirement benefits         |  |      | 257    |   |      | 664    |  
|(Increase)/decrease in operating working capital other than cash and cash equivalents       |  |      | 931    |   |      | (186   | )
|Other - net                                                                                 |  |      | 110    |   |      | (117   | )
|                                                                                            |  |      |        |   |      |        |  
|Net cash provided/(required) by operating activities                                        |  |      | 9,211  |   |      | 6,541  |  
|                                                                                            |  |      |        |   |      |        |  
|Investing activities                                                                        |  |      |        |   |      |        |  
|Capital expenditures requiring cash                                                         |  |      | (5,409 | ) |      | (3,829 | )
|Net change in purchased stumpage inventory                                                  |  |      | (1,624 | ) |      | 71     |  
|Advances to Del-Tin Fiber                                                                   |  |      | (2,455 | ) |      | (115   | )
|(Increase)/decrease in funds held by trustee                                                |  |      |       |   |      | 1,738  |  
|Other - net                                                                                 |  |      | 281    |   |      | 253    |  
|                                                                                            |  |      |        |   |      |        |  
|Net cash provided/(required) by investing activities                                        |  |      | (9,207 | ) |      | (1,882 | )
|                                                                                            |  |      |        |   |      |        |  
|Financing activities                                                                        |  |      |        |   |      |        |  
|Proceeds from borrowings                                                                    |  |      | 4,000  |   |      |       |  
|Repayments of notes payable and long-term debt                                              |  |      | (708   | ) |      | (7,016 | )
|Common stock dividends paid                                                                 |  |      | (765   | ) |      | (750   | )
|Proceeds from stock option exercises                                                        |  |      | 209    |   |      | 2,896  |  
|Other                                                                                       |  |      | 61     |   |      |       |  
|                                                                                            |  |      |        |   |      |        |  
|Net cash provided/(required) by financing activities                                        |  |      | 2,797  |   |      | (4,870 | )
|                                                                                            |  |      |        |   |      |        |  
|Net increase/(decrease) in cash and cash equivalents                                        |  |      | 2,801  |   |      | (211   | )
|Cash and cash equivalents at January 1                                                      |  |      | 859    |   |      | 1,687  |  
|                                                                                            |  |      |        |   |      |        |  
|Cash and cash equivalents at March 31                                                       |  | $    | 3,660  |   |      | 1,476  |  
|                                                                                            |  |      |        |   |      |        |  



See accompanying notes to consolidated
financial statements.



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DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Consolidated
Statements of Stockholders Equity (Unaudited)

Three Months Ended March 31,

(Thousands of dollars)



|                                                                                                 |  |      |         |   |      |         |  
|------------------------------------------------------------------------------------------------ |  | ---- | ------- | - | ---- | ------- | -
|                                                                                                 |  | 2005 |         |   | 2004 |        
|Cumulative preferred stock - $.01 par, authorized 20,000,000 shares, none issued                 |  | $    |        |   |      |        |  
|                                                                                                 |  |      |         |   |      |         |  
|Common stock - $.01 par, authorized 50,000,000 shares, 12,813,879 shares issued in 2004 and 2003 |  |      | 128     |   |      | 128     |  
|                                                                                                 |  |      |         |   |      |         |  
|Capital in excess of par value                                                                   |  |      |         |   |      |         |  
|Balance at beginning of year                                                                     |  |      | 71,483  |   |      | 69,459  |  
|Exercise of stock options                                                                        |  |      | 50      |   |      | 510     |  
|Tax benefits on stock options                                                                    |  |      | 43      |   |      | 246     |  
|Restricted stock awards                                                                          |  |      | 509     |   |      | 129     |  
|                                                                                                 |  |      |         |   |      |         |  
|Balance at end of period                                                                         |  |      | 72,085  |   |      | 70,344  |  
|                                                                                                 |  |      |         |   |      |         |  
|Retained earnings                                                                                |  |      |         |   |      |         |  
|Balance at beginning of year                                                                     |  |      | 128,516 |   |      | 119,888 |  
|Net income                                                                                       |  |      | 2,547   |   |      | 1,275   |  
|Common stock dividends                                                                           |  |      | (765    | ) |      | (750    | )
|                                                                                                 |  |      |         |   |      |         |  
|Balance at end of period                                                                         |  |      | 130,298 |   |      | 120,413 |  
|                                                                                                 |  |      |         |   |      |         |  
|Unamortized restricted stock awards                                                              |  |      |         |   |      |         |  
|Balance at beginning of year                                                                     |  |      | (924    | ) |      | (14     | )
|Stock awards                                                                                     |  |      | (1,254  | ) |      | (422    | )
|Amortization to expense                                                                          |  |      | 117     |   |      | 31      |  
|                                                                                                 |  |      |         |   |      |         |  
|Balance at end of period                                                                         |  |      | (2,061  | ) |      | (405    | )
|                                                                                                 |  |      |         |   |      |         |  
|Treasury stock                                                                                   |  |      |         |   |      |         |  
|Balance at beginning of year  605,401 and 845,600 shares, respectively                          |  |      | (13,772 | ) |      | (19,103 | )
|Shares issued for incentive plans  40,641 and 126,348 shares, respectively                      |  |      | 924     |   |      | 2,854   |  
|                                                                                                 |  |      |         |   |      |         |  
|Balance at end of period  564,760 and 719,252 shares, respectively                              |  |      | (12,848 | ) |      | (16,249 | )
|                                                                                                 |  |      |         |   |      |         |  
|Accumulated other comprehensive income                                                           |  |      | (12     | ) |      | (124    | )
|                                                                                                 |  |      |         |   |      |         |  
|Total stockholders equity                                                                       |  | $    | 187,590 |   |      | 174,107 |  
|                                                                                                 |  |      |         |   |      |         |  



See accompanying notes to consolidated
financial statements.



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DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Notes to
Consolidated Financial Statements

March 31, 2005

(Unaudited, except for December 31, 2004)



Note 1  Interim Financial Statements



The interim financial information included herein is unaudited; however, such information reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the Companys financial position, results
of operations, and cash flows for the interim periods. All such adjustments are of a normal, recurring nature. The results of operations for the first three months of the year are not necessarily indicative of the results of operations which might
be expected for the entire year.



The financial statements in
Deltics 2004 annual report on Form 10-K include a summary of significant accounting policies of the Company and should be read in conjunction with this Form 10-Q. Certain prior period amounts have been reclassified to conform with 2005
presentation format.



Note 2  Impact of Recently Effective Accounting
Pronouncements



In December, 2004, the FASB issued a
revision to SFAS 123, Accounting for Stock-Based Compensation. This revision will require the Company to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award.
This revised statement was effective as to the beginning of the first interim or annual reporting period that begins after June 15, 2005. In April, 2005 the Securities and Exchange Commission announced the adoption of a new rule that amends the
compliance dates for SFAS 123 (Revised) and allows for the implementation of SFAS 123 (Revised) at the beginning of the first fiscal year that begins after June 15, 2004. Accordingly, the Company has elected to adopt the revised statement effective
for its first quarter 2006 financial statements as opposed to the third quarter 2005 financial statements previously disclosed.



In March 2005, the FASB issued Financial Accounting Standards Board Interpretation (FIN) No. 47, Accounting for Conditional Asset Retirement
Obligations. This interpretation clarifies the term conditional asset retirement obligation as used in SFAS 143, Accounting for Asset Retirement Obligations, and is effective no later than the end of fiscal years ending after December
15, 2005. The Company does not expect the adoption of FIN 47 to have a material effect on its consolidated financial statements.



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DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Notes to
Consolidated Financial Statements

March 31, 2005

(Unaudited, except for December 31, 2004)



Note 3  Earnings per Common Share



The
amounts used in computing earnings per share consisted of the following:



|                                                                                                           |      |                             |        |  |       
|---------------------------------------------------------------------------------------------------------- | ---- | --------------------------- | ------ |  | ------
|(Thousands, except per share amounts)                                                                      |      | Three Months EndedMarch 31,
|                                                                                                           | 2005 |                             | 2004  
|Net income                                                                                                 |      | $                           | 2,547  |  | 1,275 
|                                                                                                           |      |                             |        |  |       
|Weighted average number of common shares used in basic EPS                                                 |      |                             | 12,227 |  | 12,021
|Effect of dilutive stock options                                                                           |      |                             | 93     |  | 52    
|                                                                                                           |      |                             |        |  |       
|Weighted average number of common shares and dilutive potential common stock used in EPS assuming dilution |      |                             | 12,320 |  | 12,073
|                                                                                                           |      |                             |        |  |       
|Earnings per common share                                                                                  |      |                             |        |  |       
|Basic                                                                                                      |      | $                           | .21    |  | .11   
|Assuming dilution                                                                                          |      | $                           | .21    |  | .11   



Note 4  Stock-Based
Compensation



Deltic has a stock-based compensation plan
for which the Company applies the recognition and measurement principles of APB 25, Accounting for Stock Issued to Employees, and related interpretations in accounting for those plans. Stock-based employee compensation expense is accrued for the
intrinsic value, if any, of stock options or restricted stock granted over the applicable vesting periods using the straight-line method. Options granted by the Company have an exercise price equal to the market value of the underlying common stock
on the date of grant.



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DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Notes to
Consolidated Financial Statements

March 31, 2005

(Unaudited, except for December 31, 2004)



Note 4  Stock-Based Compensation (cont.)



The effect on net income/(loss) and earnings per share if the Company had applied the fair value recognition provisions of the Financial Accounting Standards Boards Statement of Financial Accounting Standards (SFAS) 123,
Accounting for Stock-Based Compensation, consisted of the following:



|                                                                                                                                                                            |      |                             |       |      |  |       |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | --------------------------- | ----- | ---- |  | ----- | -
|(Thousands of dollars, except per share amounts)                                                                                                                            |      | Three Months EndedMarch 31, |      
|                                                                                                                                                                            | 2005 |                             |       | 2004 | 
|Net income/(loss), as reported                                                                                                                                              |      | $                           | 2,547 |      |  | 1,275 |  
|Plus total stock-based compensation expense determined under the intrinsic value method for awards, net of related tax effects, included in
the determination of net income |      |                             | 116   |      |  | 163   |  
|Less pro forma total stock-based compensation expense determined under the fair value method for all awards, net of related tax
effects                                     |      |                             | (188  | )    |  | (280  | )
|                                                                                                                                                                            |      |                             |       |      |  |       |  
|Pro forma net income/(loss)                                                                                                                                                 |      | $                           | 2,475 |      |  | 1,158 |  
|                                                                                                                                                                            |      |                             |       |      |  |       |  
|Basic earnings per share                                                                                                                                                    |      |                             |       |      |  |       |  
|As reported                                                                                                                                                                 |      | $                           | .21   |      |  | .11   |  
|Pro forma                                                                                                                                                                   |      |                             | .20   |      |  | .10   |  
|Dilutive earnings per share                                                                                                                                                 |      |                             |       |      |  |       |  
|As reported                                                                                                                                                                 |      | $                           | .21   |      |  | .11   |  
|Pro forma                                                                                                                                                                   |      |                             | .20   |      |  | .10   |  



For the pro forma net
income calculation in the preceding table, the fair value of each option on the date of grant was estimated using the Black-Scholes option-pricing model and the following assumptions for awards in 2005 and 2004, respectively: dividend yields of .81
percent and .90 percent; expected volatilty of 31.54 percent and 30.00 percent; risk-free interest rates of 3.83 percent and 4.10 percent; and expected lives of five years. Using these assumptions, the weighted average grant-date fair value per
share of options granted in 2005 and 2004 was $15.35 and $9.50, respectively.



Note 5  Inventories



Inventories at the
balance sheet dates consisted of the following:



|                       |  |              |       |              |      
|---------------------- |  | ------------ | ----- | ------------ | -----
|(Thousands of dollars) |  | Mar. 31,2005 |       | Dec. 31,2004
|Logs                   |  | $            | 2,518 |              | 1,005
|Lumber                 |  |              | 3,267 |              | 4,253
|Materials and supplies |  |              | 295   |              | 308  
|                       |  |              |       |              |      
|                       |  | $            | 6,080 |              | 5,566
|                       |  |              |       |              |      



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DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Notes to
Consolidated Financial Statements

March 31, 2005

(Unaudited, except for December 31, 2004)



Note 6  Investment in Del-Tin Fiber



Deltic owns 50 percent of the membership of Del-Tin Fiber, which completed construction and commenced production operations of a medium density fiberboard (MDF) plant near El Dorado, Arkansas, during 1998.



Prior to August 26, 2004, the Company had agreed to a contingent equity
contribution agreement with Del-Tin Fiber and the group of banks from whom Del-Tin Fiber had obtained its $89,000,000 credit facility. Under this agreement, Deltic and the other 50 percent owner of the joint venture had agreed to fund any deficiency
in contributions to either Del-Tin Fibers required sinking fund or debt service reserve, up to a cumulative total of $17,500,000 for each owner. In addition, each owner had committed to a production support agreement, under which each owner
had agreed to make support obligation payments to Del-Tin Fiber to provide, on the occurrence of certain events, additional funds for payment of debt service until the plant was able to successfully complete a minimum production test. Both owners
had also agreed, in a series of one-year term commitments, to fund any operating working capital needs until the facility was able to consistently generate sufficient funds to meet its cash requirements.



On August 26, 2004, Del-Tin Fiber refinanced its existing long-term debt by
entering into a credit agreement consisting of a letter of credit and term loan with multiple lending institutions. The funds provided from this credit agreement were used, together with the existing balance in Del-Tin Fibers debt service
reserve and bond sinking fund accounts, to redeem $60,000,000 of its $89,000,000 industrial revenue bonds. Under the new credit agreement, the lenders, on September 1, 2004, loaned Del-Tin Fiber $30,000,000 which will be repayable over five years in
equal quarterly installments, beginning December 31, 2004, and issued on Del-Tin Fibers behalf, a letter of credit in the amount of $29,689,000 to support the remaining industrial revenue bonds originally issued in 1998 by Union County,
Arkansas. Concurrent with this event, on August 26, 2004, Deltic executed a guarantee agreement in connection with the refinancing of the debt of Del-Tin Fiber. Under Deltics guarantee agreement, Deltic unconditionally guarantees the due and
punctual payment of 50 percent ($28,345,000 at March 31, 2005) of Del-Tins obligations under its credit agreement. This new credit agreement of Del-Tin Fiber fully replaces Del-Tin Fibers prior credit facility, resulting in Deltics
previous contingent equity contribution agreement of $17,500,000, the production support agreement, and the need for the series of one-year operating working capital commitments being fully extinguished.



The Company has adopted the provisions of FASB Interpretation No. 45,
Guarantors Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others, an interpretation of FASB Statements No. 5, 57 and 107 and a rescission of FASB Interpretation No. 34 (FIN
45). In accordance with FIN 45, Deltic estimated the fair value of its guarantee of Del-Tin Fibers credit agreement to be $3,450,000 and included this non-cash amount in the Companys Consolidated Balance Sheet as a long-term
liability with an offsetting increase in the Companys investment in Del-Tin Fiber. Deltic is reducing this liability systematically over the life of the credit agreement, as the Company is released from risk under the guarantee.
Simultaneously, the offsetting amount which represents the difference between the Companys recorded investment in Del-Tin Fiber and its underlying equity in the net assets of the joint venture is being amortized over the same period as the
guarantee. The amortization of the guarantee and the basis difference are netted for purposes of financial reporting and result in no net income statement effect. At March 31, 2005, Deltics remaining liability regarding the guarantee was
$3,105,000.



10



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##### Table of Contents



DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Notes to
Consolidated Financial Statements

March 31, 2005

(Unaudited, except for December 31, 2004)



Note 6  Investment in Del-Tin Fiber (cont.)



The financial position for Del-Tin Fiber as of the balance sheet dates and results of operations for the three months ended March 31 consisted of the following:



|                                                 |  |              |         |              |        
|------------------------------------------------ |  | ------------ | ------- | ------------ | -------
|(Thousands of dollars)                           |  | Mar. 31,2005 |         | Dec. 31,2004
|                                                 |  |             
|Condensed Balance Sheet Information              |  |              |         |              |        
|Current assets                                   |  | $            | 9,444   |              | 7,107  
|Property, plant, and equipment - net             |  |              | 93,822  |              | 93,201 
|Other noncurrent assets                          |  |              | 500     |              | 528    
|                                                 |  |              |         |              |        
|Total assets                                     |  | $            | 103,766 |              | 100,836
|                                                 |  |              |         |              |        
|Current liabilities                              |  | $            | 11,366  |              | 10,616 
|Long-term debt                                   |  |              | 50,000  |              | 51,500 
|Members capital/(deficit)                       |  |              | 42,400  |              | 38,720 
|                                                 |  |              |         |              |        
|Total liabilities and members capital/(deficit) |  | $            | 103,766 |              | 100,836
|                                                 |  |              |         |              |        



|                                         |  |                             |        |   |      |        |  
|---------------------------------------- |  | --------------------------- | ------ | - | ---- | ------ | -
|                                         | 
|                                         |  | Three Months EndedMarch 31, |       
|(Thousands of dollars)                   |  | 2005                        |        |   | 2004 |       
|                                         |  |                            
|Condensed Income Statement Information   |  |                             |        |   |      |        |  
|Net sales                                |  | $                           | 9,981  |   |      | 14,870 |  
|                                         |  |                             |        |   |      |        |  
|Costs and expenses                       |  |                             |        |   |      |        |  
|Cost of sales                            |  |                             | 9,434  |   |      | 12,104 |  
|Depreciation                             |  |                             | 1,110  |   |      | 1,536  |  
|General and administrative expenses      |  |                             | 514    |   |      | 618    |  
|Gain on involuntary conversion of assets |  |                             | (799   | ) |      |       |  
|                                         |  |                             |        |   |      |        |  
|Total costs and expenses                 |  |                             | 10,259 |   |      | 14,258 |  
|                                         |  |                             |        |   |      |        |  
|Operating income/(loss)                  |  |                             | (278   | ) |      | 612    |  
|Interest income                          |  |                             | 4      |   |      | 62     |  
|Interest and other debt expense          |  |                             | (656   | ) |      | (782   | )
|Other income/(loss)                      |  |                             | (501   | ) |      | (65    | )
|                                         |  |                             |        |   |      |        |  
|Net income/(loss)                        |  | $                           | (1,431 | ) |      | (173   | )
|                                         |  |                             |        |   |      |        |  



11



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##### Table of Contents



DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Notes to
Consolidated Financial Statements

March 31, 2005

(Unaudited, except for December 31, 2004)



Note 7  Timber and Timberlands



Timber
and timberlands at the balance sheet dates consisted of the following:



|                                                                          |  |              |         |   |              |         |  
|------------------------------------------------------------------------- |  | ------------ | ------- | - | ------------ | ------- | -
|(Thousands of dollars)                                                    |  | Mar. 31,2005 |         |   | Dec. 31,2004 |        
|                                                                          |  |             
|Purchased stumpage inventory                                              |  | $            | 8,617   |   |              | 6,993   |  
|Timberlands                                                               |  |              | 79,721  |   |              | 79,650  |  
|Fee timber                                                                |  |              | 197,364 |   |              | 196,406 |  
|Logging facilities                                                        |  |              | 1,778   |   |              | 1,778   |  
|                                                                          |  |              |         |   |              |         |  
|                                                                          |  |              | 287,480 |   |              | 284,827 |  
|Less accumulated cost of fee timber harvested and facilities depreciation |  |              | (71,357 | ) |              | (70,117 | )
|                                                                          |  |              |         |   |              |         |  
|                                                                          |  | $            | 216,123 |   |              | 214,710 |  
|                                                                          |  |              |         |   |              |         |  



Note 8  Property, Plant, and
Equipment



Property, plant, and equipment at the balance
sheet dates consisted of the following:



|                              |  |              |         |   |              |         |  
|----------------------------- |  | ------------ | ------- | - | ------------ | ------- | -
|(Thousands of dollars)        |  | Mar. 31,2005 |         |   | Dec. 31,2004 |        
|                              |  |             
|Land                          |  | $            | 125     |   |              | 125     |  
|Land improvements             |  |              | 4,268   |   |              | 4,268   |  
|Buildings and structures      |  |              | 5,599   |   |              | 5,402   |  
|Machinery and equipment       |  |              | 77,231  |   |              | 74,572  |  
|                              |  |              |         |   |              |         |  
|                              |  |              | 87,223  |   |              | 84,367  |  
|Less accumulated depreciation |  |              | (50,240 | ) |              | (48,600 | )
|                              |  |              |         |   |              |         |  
|                              |  | $            | 36,983  |   |              | 35,767  |  
|                              |  |              |         |   |              |         |  



12



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##### Table of Contents



DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Notes to
Consolidated Financial Statements

March 31, 2005

(Unaudited, except for December 31, 2004)



Note 9  Employee and Retiree Benefit Plans



The components of net periodic retirement expense and other postretirement benefits expense for the three months ended March 31 consisted of the following:



|                                     |  |                 |      |   |                             |      |   |      |     |      |    
|------------------------------------ |  | --------------- | ---- | - | --------------------------- | ---- | - | ---- | --- | ---- | ---
|                                     |  | RetirementPlans |      |   | OtherPostretirementBenefits
|(Thousands of dollars)               |  | 2005            |      |   | 2004                        |      |   | 2005 |     | 2004
|                                     |  |                 |      |  
|Service cost                         |  | $               | 201  |   |                             | 196  |   |      | 93  |      | 100
|Interest cost                        |  |                 | 305  |   |                             | 275  |   |      | 124 |      | 139
|Expected return on plan assets       |  |                 | (242 | ) |                             | (223 | ) |      |    |      |   
|Amortization of prior service cost   |  |                 | 13   |   |                             | 12   |   |      | 5   |      |   
|Amortization of net (gain)/loss      |  |                 | 33   |   |                             | 44   |   |      | 15  |      | 45 
|                                     |  |                 |      |   |                             |      |   |      |     |      |    
|Net periodic benefit cost            |  |                 | 310  |   |                             | 304  |   |      | 237 |      | 284
|Cost of special termination benefits |  |                 |     |   |                             | 150  |   |      |    |      |   
|                                     |  |                 |      |   |                             |      |   |      |     |      |    
|Total expense                        |  | $               | 310  |   |                             | 454  |   |      | 237 |      | 284
|                                     |  |                 |      |   |                             |      |   |      |     |      |    



Note 10  Supplemental Cash
Flow Disclosures



The Company had neither income tax
payments or refunds in the 2005 and 2004 periods. Interest paid, net of amounts capitalized, was $250,000 and $363,000 in the first three months of 2005 and 2004, respectively.



(Increases)/decreases in operating working capital, other than cash and cash equivalents, for the three months ended March
31 consisted of the following:



|                                                |  |      |       |   |      |        |  
|----------------------------------------------- |  | ---- | ----- | - | ---- | ------ | -
|(Thousands of dollars)                          |  | 2005 |       |   | 2004 |       
|                                                |  |     
|Trade accounts receivable                       |  | $    | (172  | ) |      | (1,365 | )
|Other receivables                               |  |      | 1     |   |      | 190    |  
|Inventories                                     |  |      | (515  | ) |      | 490    |  
|Prepaid expenses and other current assets       |  |      | 223   |   |      | (65    | )
|Trade accounts payable                          |  |      | (605  | ) |      | (908   | )
|Accrued taxes other than income taxes           |  |      | 273   |   |      | 341    |  
|Income taxes payable                            |  |      | 1,579 |   |      | 503    |  
|Deferred revenues and other accrued liabilities |  |      | 147   |   |      | 628    |  
|                                                |  |      |       |   |      |        |  
|                                                |  | $    | 931   |   |      | (186   | )
|                                                |  |      |       |   |      |        |  



13



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##### Table of Contents



DELTIC TIMBER CORPORATION

AND SUBSIDIARIES

Notes to
Consolidated Financial Statements

March 31, 2005

(Unaudited, except for December 31, 2004)



Note 11  Business Segments



Information
about the Companys business segments consisted of the following:



|                                                             |      |                              |        |      |  |        |  
|------------------------------------------------------------ | ---- | ---------------------------- | ------ | ---- |  | ------ | -
|(Thousands of dollars)                                       |      | Three Months Ended March 31, |       
|                                                             | 2005 |                              |        | 2004 | 
|Net sales                                                    |      |                              |        |      |  |        |  
|Woodlands                                                    |      | $                            | 9,738  |      |  | 8,194  |  
|Mills                                                        |      |                              | 30,238 |      |  | 20,512 |  
|Real Estate                                                  |      |                              | 5,034  |      |  | 3,830  |  
|Eliminations*                                                |      |                              | (5,575 | )    |  | (4,725 | )
|                                                             |      |                              |        |      |  |        |  
|                                                             |      | $                            | 39,435 |      |  | 27,811 |  
|                                                             |      |                              |        |      |  |        |  
|Income before income taxes                                   |      |                              |        |      |  |        |  
|Operating income                                             |      |                              |        |      |  |        |  
|Woodlands                                                    |      | $                            | 6,840  |      |  | 5,449  |  
|Mills                                                        |      |                              | 1,739  |      |  | 291    |  
|Real Estate                                                  |      |                              | 1,020  |      |  | 592    |  
|Corporate                                                    |      |                              | (3,034 | )    |  | (2,570 | )
|Eliminations                                                 |      |                              | (233   | )    |  | 130    |  
|                                                             |      |                              |        |      |  |        |  
|Operating income                                             |      |                              | 6,332  |      |  | 3,892  |  
|Equity in Del-Tin Fiber                                      |      |                              | (715   | )    |  | (234   | )
|Interest income                                              |      |                              | 25     |      |  | 58     |  
|Interest and other debt expense                              |      |                              | (1,403 | )    |  | (1,583 | )
|Other income/(expense)                                       |      |                              |       |      |  | (4     | )
|                                                             |      |                              |        |      |  |        |  
|                                                             |      | $                            | 4,239  |      |  | 2,129  |  
|                                                             |      |                              |        |      |  |        |  
|Depreciation, amortization, and cost of fee timber harvested |      |                              |        |      |  |        |  
|Woodlands                                                    |      | $                            | 1,317  |      |  | 1,373  |  
|Mills                                                        |      |                              | 1,447  |      |  | 1,349  |  
|Real Estate                                                  |      |                              | 146    |      |  | 154    |  
|Corporate                                                    |      |                              | 47     |      |  | 37     |  
|                                                             |      |                              |        |      |  |        |  
|                                                             |      | $                            | 2,957  |      |  | 2,913  |  
|                                                             |      |                              |        |      |  |        |  
|Capital expenditures                                         |      |                              |        |      |  |        |  
|Woodlands                                                    |      | $                            | 1,119  |      |  | 2,586  |  
|Mills                                                        |      |                              | 2,692  |      |  | 164    |  
|Real Estate                                                  |      |                              | 1,544  |      |  | 1,011  |  
|Corporate                                                    |      |                              | 54     |      |  | 68     |  
|                                                             |      |                              |        |      |  |        |  
|                                                             |      | $                            | 5,409  |      |  | 3,829  |  
|                                                             |      |                              |        |      |  |        |  

---

|* | Intersegment sales of timber from Woodlands to Mills.
|- | -----------------------------------------------------



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##### Table of Contents

|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------



Executive Overview



The Company recorded net income of $2.5 million for the first quarter of 2005 compared to $1.3 million for the same period of 2004. All three operating
segments of the Company  Woodlands, Mills, and Real Estate  contributed to the current quarter earnings. Deltics Woodlands Segment continued its role as the established core operation of the Company during the first quarter,
providing $6.8 million in operating income. Deltics sawmills have continued to benefit from the combination of increased production efficiencies and the current market condition for softwood lumber products, as evidenced by our Mills
segments $1.4 million improvement in operating income when compared to the first quarter of 2004. The Real Estate segment reported a 19 percent increase in residential lot sales from the same period last year, and continued strong demand for
the Companys residential offerings was confirmed by purchase commitments, as of March 31, for 122 of the 138 lots offered in late January. The first quarter operations of Del-Tin Fiber L.L.C., in which Deltic owns a 50 percent interest, were
hindered by a temporary production curtailment caused by a fire sustained at the facility on January 16, 2005.



With the exception of its diversification in real estate development, Deltic is primarily a wood products producer operating in a commodity-based business
environment. This environment is affected by a number of factors, including general economic conditions, interest rates, imports, foreign exchange rates, housing starts, residential repair and remodeling, commercial construction, industry capacity
and production levels, the availability of raw material, and weather conditions. Housing starts in the U.S. and Canada, fueled by relatively low mortgage interest rates, remained strong during the first quarter of 2005. Consequently, the high demand
for softwood lumber products experienced in 2004, has continued thus far in 2005, resulting in the retention of appropriate pricing levels within the industry. Given its relative size and the nature of most commodity markets, the Company has little
or no control over pricing levels for its wood products. Therefore, the Company will continually seek to wring controllable costs and expenses from its manufacturing process. Sales of real estate are affected by general economic conditions and
interest rates, specifically as such factors are manifested in the Companys operating area of central Arkansas.



For the first quarter of 2005, pine sawtimber harvest levels increased 8,421 tons, to 179,202, when compared to the first quarter of 2004. The Company
plans to keep 2005s total pine sawtimber harvest volume comparable to the level in 2004. However, as a result of the segments geographic operating area experiencing a higher than normal level of rainfall during the latter half of 2004,
which hindered logging operations within the industry, area mills began to deplete their existing log inventories. Consequently, the demand and corresponding price for pine sawtimber logs within the region increased during the first quarter of 2005,
and Deltic increased its harvesting activities during the period to take full advantage of these prices. Ultimately, the Companys ability to sell pine sawtimber at acceptable prices in the future will be dependent upon the size or existence of
markets for manufactured lumber and other wood products. Activities to sell timberland identified as having a higher and better use or as being non-strategic continue. However, Deltic will consider these sales only to the extent that the returns on
these transactions meet increased expectations, and there were no timberland sales during the first quarter of 2005. Timberland designated as higher and better use consists of tracts with market values that exceed the lands worth as a timber
growing platform. Non-strategic timberland is composed primarily of tracts too small to allow efficient timber management, those geographically isolated from other Company fee lands, and acreage otherwise not deemed strategic to Deltics
operations or growth.



15



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##### Table of Contents

For the Mills segment, the improvement in lumber prices, demonstrated by a ten percent rise in sale
prices from the average for the first quarter of 2004, significantly impacted operating strategies and financial results. As with any commodity market, the Company expects the historical volatility to continue in the future; however, a resolution of
the trade dispute with Canada regarding imports of softwood lumber could help to stabilize the markets for the Companys lumber products. Deltic also continues efforts to improve sales realizations through product and customer mix enhancement,
as well as being focused on increased efficiency and reduced cost structure. In response to improved market conditions, the Company continued its efforts to generate increased production, achieving a record level of lumber production for the month
of March 2005 and a 31 percent increase in sales volume for the current quarter compared to the first quarter of 2004. The Company continues to anticipate that a significant percentage of logs supplied to both of its sawmills will come from
strategically located Company fee timberlands.



Sales activity
levels for the Companys real estate developments are affected by economic conditions that influence the level of housing starts in the central Arkansas region, including general economic conditions and interest rates. Relatively low mortgage
interest rates continued into the first quarter of 2005 and demand for residential lots in the Companys Chenal Valley development remains high. Weather-related delays prevented the Company from offering for sale 138 lots that were planned for
completion in Chenal Valley during the fourth quarter of 2004. Construction of these planned 2004 lots was completed in January and offered for sale on January 20, 2005. As of March 31, the Company had closed or obtained purchase commitments on 122
of these. Deltic plans to develop another 390 lots during the remainder of 2005. In Deltics other two active developments, Red Oak Ridge and Chenal Downs, a total of 4 lots were sold, leaving 43 developed lots in Red Oak Ridge and 24 in Chenal
Downs uncommitted as of March 31, 2005. While Chenal Downs is fully developed, Deltic plans to develop approximately 40 additional lots within Red Oak Ridge in 2005. Future development activity will be dependent upon the demand for the
Companys residential lots, which is expected to remain strong as long as interest rates remain at or near current levels.



During 2004, the Company disclosed plans for a 1,170-acre upscale residential development, The Ridges at Nowlin Creek, on a portion of its large land
holdings located west of Chenal Valley. Construction activity at this site has not yet begun. A portion of the development is located within the watershed of Lake Maumelle, a principal source of drinking water for Little Rock. Due to this
environmentally sensitive locale, the Company intends to implement the most modern and proven best management practices to create a low impact development in order to protect water quality in the lake. The Company continues to finalize environmental
and civil engineering features of the development and to reach an accord with local utilities and government agencies that the development will be fully protective of water quality. The local water utility continues to express its intention to
acquire this watershed acreage, including by condemnation. However, it has commissioned preparation of a new watershed management plan which the Company hopes will reflect current scientific principles that will be compatible with the Companys
low impact development plans. Preparation of this new watershed management plan is expected to take up to 18 months.



The reported average sales price for residential lots for a specific period is largely dependent upon the mix of lot sales closed in that period. The
average residential lot sales price for the first quarter of 2005 remained relatively flat when compared to the same period a year ago. Deltics lot development plans provide for a mix of lot offerings that represent most real estate market
segments for planned communities.



Commercial real estate sales
activity is by nature less predictable than residential activity. Commercial sales for the first quarter of 2005 consisted of one .99-acre site versus 2.03 acres during the first quarter of 2004. With the number of residents in Chenal Valley, and
other west Little Rock areas, growing steadily and momentum created from previous sales of commercial acreage in the development, interest in the Companys remaining commercial acreage remains strong. On April 6, 2004, RED Development LLC
announced plans for The Promenade at Chenal, a 48-acre, open-air, lifestyle shopping center. (The sales contract regarding this site originally was scheduled to close before the end of 2004. However, as is the inherent unpredictable
nature of commercial real estate sales, the initial



16



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##### Table of Contents

contract has been extended and is now scheduled to close in 2005. Some extensions of similar contracts in the past have been followed by the termination of
the commercial sale.) In addition, the Real Estate segment completed the sale of 6.73 acres of undeveloped real estate property within Chenal Valley in the first quarter of 2005 with no such sales occurring during the prior-year period. Unlike
residential lots and commercial acres, undeveloped real estate property is not directly marketed by the Company, and sales of such property have been historically sporadic in nature and are usually initiated by inquiry from a potential purchaser. No
commercial acreage is included in the Chenal Downs or the planned Ridges at Nowlin Creek developments. Red Oak Ridge is planned to include approximately 80 acres of commercial property. The Company will begin to develop and offer commercial sites as
this developments population density increases.



Operating results for Del-Tin Fiber are affected by the overall MDF market and the plants operating performance, and both experienced significant improvements during the recently ended year of 2004. However, the facilitys first
quarter operations were hindered by a temporary production curtailment caused by a fire sustained at the plant on January 16, 2005. As disappointing as this event was in light of the much-improved operational and financial performance of the plant
during 2004, the facility was able to resume production in just three and a half weeks after the incident. Deltics focus remains on the continuation of the facilitys recent operating and financial improvements throughout the remainder of
2005.



Results of Operations



In the following tables, Deltics net sales and results of operations
are presented for the quarters ended March 31, 2005 and 2004. Explanations of significant variances and additional analyses for the Companys consolidated and segmental operations follow the tables.



|                                                |      |                         |      |      |  |      |  
|----------------------------------------------- | ---- | ----------------------- | ---- | ---- |  | ---- | -
|(Millions of dollars, except per share amounts) |      | Quarter Ended March 31, |     
|                                                | 2005 |                         |      | 2004 | 
|Net sales                                       |      |                         |      |      |  |      |  
|Woodlands                                       |      | $                       | 9.7  |      |  | 8.2  |  
|Mills                                           |      |                         | 30.2 |      |  | 20.5 |  
|Real Estate                                     |      |                         | 5.0  |      |  | 3.8  |  
|Eliminations                                    |      |                         | (5.5 | )    |  | (4.7 | )
|                                                |      |                         |      |      |  |      |  
|Net sales                                       |      | $                       | 39.4 |      |  | 27.8 |  
|                                                |      |                         |      |      |  |      |  
|Operating income/(loss) and net income/(loss)   |      |                         |      |      |  |      |  
|Woodlands                                       |      | $                       | 6.8  |      |  | 5.5  |  
|Mills                                           |      |                         | 1.7  |      |  | 0.3  |  
|Real Estate                                     |      |                         | 1.0  |      |  | .6   |  
|Corporate                                       |      |                         | (3.0 | )    |  | (2.6 | )
|Eliminations                                    |      |                         | (0.2 | )    |  | 0.1  |  
|                                                |      |                         |      |      |  |      |  
|Operating income/(loss)                         |      |                         | 6.3  |      |  | 3.9  |  
|Equity in Del-Tin Fiber                         |      |                         | (0.7 | )    |  | (0.2 | )
|Interest income                                 |      |                         |     |      |  | .1   |  
|Interest and other debt expense                 |      |                         | (1.4 | )    |  | (1.6 | )
|Other income/(expense)                          |      |                         |     |      |  |     |  
|Income taxes                                    |      |                         | (1.7 | )    |  | (.9  | )
|                                                |      |                         |      |      |  |      |  
|Net income/(loss)                               |      | $                       | 2.5  |      |  | 1.3  |  
|                                                |      |                         |      |      |  |      |  
|Earnings per common share                       |      |                         |      |      |  |      |  
|Basic                                           |      | $                       | .21  |      |  | .11  |  
|Assuming dilution                               |      | $                       | .21  |      |  | .11  |  



17



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##### Table of Contents

Consolidated



The $1.2 million increase in net income was the result of improved financial results for the Companys Mills, Woodlands
and Real Estate segments, partially offset by increased negative financial results of Del-Tin Fiber, due to the plants first quarter production curtailment, and increased Corporate operating expense.



Operating income increased $2.4 million. The Woodlands segment increased $1.3
million due primarily to increased pine sawtimber harvest levels at a 13 percent higher average per ton pine sawtimber price when compared to the first quarter of 2004. Deltics Mills segment operations improved $1.4 million due mainly to a
$33, or ten percent, per thousand board feet (MBF) increase in the average lumber sales price combined with a 31 percent increase in lumber sales volume. Real Estate operating income increased $.4 million, primarily due to the sales of
undeveloped real estate and increased sales of residential lots. Corporate operating expense increased $.4 million due to higher general and administrative expenses.



Woodlands



Selected financial and statistical data for the Woodlands segment is shown in the following table.



|                                 |  |                         |       |      |      
|-------------------------------- |  | ----------------------- | ----- | ---- | -----
|                                 |  | Quarter Ended March 31,
|                                 |  | 2005                    |       | 2004
|Net sales (millions of dollars)  |  |                         |       |      |      
|Pine sawtimber                   |  | $                       | 7.7   |      | 6.5  
|Pine pulpwood                    |  |                         | .7    |      | .4   
|Hardwood sawtimber               |  |                         |      |      | .1   
|Hardwood pulpwood                |  |                         | .1    |      | .1   
|                                 |  |                        
|Sales volume (thousands of tons) |  |                         |       |      |      
|Pine sawtimber                   |  |                         | 179.2 |      | 170.8
|Pine pulpwood                    |  |                         | 71.5  |      | 67.5 
|Hardwood sawtimber               |  |                         |      |      | 2.0  
|Hardwood pulpwood                |  |                         | 9.6   |      | 22.9 
|                                 |  |                        
|Sales price (per ton)            |  |                         |       |      |      
|Pine sawtimber                   |  | $                       | 43    |      | 38   
|Pine pulpwood                    |  |                         | 10    |      | 6    
|Hardwood sawtimber               |  |                         |      |      | 31   
|Hardwood pulpwood                |  |                         | 8     |      | 6    
|                                 |  |                        
|Timberland                       |  |                         |       |      |      
|Net sales (millions of dollars)  |  | $                       |      |      | .2   
|Sales volume (acres)             |  |                         |      |      | 238  
|Sales price (per acre)           |  | $                       |      |      | 994  



Net sales increased
$1.5 million. Sales of pine sawtimber increased $1.2 million due to a five percent higher sales volume at a $5 per ton higher average sales price. Sales of pine pulpwood increased $.3 million due to a six percent higher sales volume at a $4 per ton
higher average sales price. Other revenues, which includes freight revenues, timberland management fees, and lease income, increased $.4 million. Despite the segments increase in net sales, the cost of fee timber harvested remained relatively
flat due primarily to the mix of pine sawtimber harvest volume by Company. The improvement in operating results was due primarily to the increase in net sales.



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##### Table of Contents

Mills



Selected financial and statistical data for the Mills segment is shown in the following table.



|                                |  |                         |      |      |     
|------------------------------- |  | ----------------------- | ---- | ---- | ----
|                                |  | Quarter Ended March 31,
|                                |  | 2005                    |      | 2004
|Net sales (millions of dollars) |  |                         |      |      |     
|Lumber                          |  | $                       | 25.5 |      | 17.7
|Residual by-products            |  |                         | 3.7  |      | 2.4 
|Lumber                          |  |                         |      |      |     
|Finished production (MMBF)      |  |                         | 63.1 |      | 51.8
|Sales volume (MMBF)             |  |                         | 68.8 |      | 52.4
|Sales price (per MBF)           |  |                         | 370  |      | 337 



Net sales increased
$9.7 million, or 47 percent, due primarily to higher lumber sales prices and volumes. Average sales price rose 10 percent, or $33 per MBF, as a result of the improved lumber market. Also contributing to the increase in net sales was the
corresponding increases in residual sales and freight revenue, resulting from the segments volume increase. The improvement in operating results was due primarily to the increase in net sales and the Companys efforts to improve
production efficiencies, offset by an increase in raw material log cost.



Real Estate



Selected
financial and statistical data for the Real Estate segment is shown in the following table.



|                                           |  |                         |     |      |    
|------------------------------------------ |  | ----------------------- | --- | ---- | ---
|                                           |  | Quarter Ended March 31,
|                                           |  | 2005                    |     | 2004
|Net sales (millions of dollars)            |  |                         |     |      |    
|Residential lots                           |  | $                       | 2.8 |      | 2.3
|Commercial sites                           |  |                         | .6  |      | .3 
|Undeveloped acreage                        |  |                         | .4  |      |   
|Chenal Country Club                        |  |                         | 1.1 |      | 1.0
|                                           |  |                        
|Sales volume                               |  |                         |     |      |    
|Residential lots                           |  |                         | 37  |      | 31 
|Commercial acres                           |  |                         | 1   |      | 2  
|Undeveloped acres                          |  |                         | 7   |      |   
|                                           |  |                        
|Average sales price (thousands of dollars) |  |                         |     |      |    
|Residential lots                           |  | $                       | 72  |      | 74 
|Commercial acres                           |  |                         | 633 |      | 152
|Undeveloped acres                          |  |                         | 64  |      |   



Net sales increased
$1.2 million. The number of residential lots sold increased by six lots with the average sales price per lot remaining relatively flat. Commercial real estate sales volume decreased compared to the first quarter of 2004, but the average sales price
per acre significantly increased due to the current-period tract being a developed outparcel at The Village at Rahling Road. In addition, the segment completed the sale of approximately 7 acres of undeveloped real estate property during the quarter.
The increase in the Real Estate segments operating income was due primarily to the same factors impacting net sales.



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##### Table of Contents

Corporate



The increase in operating expense for Corporate functions of $.4 million was due primarily to higher professional and legal
fees relating to the Companys compliance with Section 404 of the Sarbanes-Oxley Act of 2002 and the continued planning of the Ridges at Nowlin Creek.



Eliminations



Intersegment sales of timber from Deltics Woodlands to the Mills segment increased $.8 million to $5.5 million. The increase was due primarily to
increased volume as the Companys sawmills increased the percentage of log receipts coming into their log yards from Company fee timberlands.



Equity in Del-Tin Fiber



For the first quarter of 2005, Deltics equity in Del-Tin Fiber was a loss of $.7 million compared to a loss of .2 million for the same period of
2004. The first quarter results of Del-Tin Fiber includes the loss sustained by a fire at the plant on January 16, 2005 and the resulting production curtailment during the quarter.



Additional selected financial and statistical data for Del-Tin Fiber is shown in the following table.



|                                |  |                        |      |      |     
|------------------------------- |  | ---------------------- | ---- | ---- | ----
|                                |  | Quarter EndedMarch 31,
|                                |  | 2005                   |      | 2004
|Net sales (millions of dollars) |  | $                      | 10.0 |      | 14.9
|Finished production (MMSF)      |  |                        | 23.4 |      | 37.9
|Board sales (MMSF)              |  |                        | 24.4 |      | 40.2
|Sales price (per MSF)           |  | $                      | 409  |      | 370 



Average sales price
increased $39 per thousand square feet (MSF) due to the improvements in the MDF market, to a change in product mix to include a greater percentage of thin board, and an increase in premium-grade production. Manufacturing cost per MSF
sold was up due to decreased production volume caused by the first quarter fire related production curtailment.



Income Taxes



The effective income tax rate was 40 percent for both the 2005 and 2004 periods.



Liquidity and Capital Resources



Cash Flows and Capital Expenditures



Net cash provided by operating activities totaled $9.2 million for the first three months of 2005 compared to $6.5 million for the same period in 2004.
Changes in operating working capital, other than cash and cash equivalents, provided cash of $.9 million in the 2005 period, but required cash of $.2 million in 2004. The Companys accompanying Consolidated Statements of Cash Flows identify
other differences between net income/(loss) and cash provided by operating activities for each reporting period.



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##### Table of Contents

Capital expenditures required cash of $5.4 million in the current-year period and $3.8 million a year
ago. Capital expenditures by segment consisted of the following:



|                       |  |                             |       |      |      
|---------------------- |  | --------------------------- | ----- | ---- | -----
|                       |  | Three Months EndedMarch 31,
|(Thousands of dollars) |  | 2005                        |       | 2004
|                       |  |                            
|Woodlands              |  | $                           | 1,119 |      | 2,586
|Mills                  |  |                             | 2,692 |      | 164  
|Real Estate            |  |                             | 1,544 |      | 1,011
|Corporate              |  |                             | 54    |      | 68   
|                       |  |                             |       |      |      
|Capital expenditures   |  | $                           | 5,409 |      | 3,829
|                       |  |                             |       |      |      



The net change in
purchased stumpage inventory to be utilized in the Companys sawmill operations required cash of $1.6 million in 2005, but provided cash of $.1 million in 2004. The Company made advances to Del-Tin Fiber of $2.5 million during the current
period, which increased $2.4 million from the corresponding period of 2004 due to the production curtailment at the facility. During 2004, $1.7 million of proceeds from sales of timberland that were previously held by a trustee were used to acquire
timberland designated as replacement property for income tax purposes, as required for tax-deferred exchanges. In 2005, Deltic borrowed $4 million and made repayments of debt of $.7 million. During 2004, Deltic made repayments of
previous borrowings under its revolving credit facility of $7 million. Deltic paid dividends on common stock of $.8 million during the current period, consistent with the $.7 million dividend payments in 2004. In 2005, proceeds from stock option
exercises amounted to $.2 million, a decrease of $2.7 million when compared to 2004.



Financial Condition



Working capital totaled $7.7 million at March 31, 2005, and $5.8 million at December 31, 2004. Deltics working capital ratio at March 31, 2005, was 1.75 to 1, compared to 1.66 to 1 at the end of 2004. Cash and cash equivalents at the
end of the first quarter of 2005 were $3.7 million compared to $.9 million at the end of 2004. During the first three months of 2005, total indebtedness of the Company increased $3.3 million to $89 million. Deltics long-term debt to
stockholders equity ratio was .475 to 1 at March 31, 2005, compared to .462 to 1 at year-end 2004.



Liquidity



The primary sources of the Companys liquidity are internally generated funds, access to outside financing, and working capital. The Companys
current strategy for growth continues to emphasize its timberland acquisition program, in addition to expanding lumber production as market conditions allow and developing real estate at Chenal Valley and Red Oak Ridge.



To facilitate these growth plans, the Company has an agreement with a group
of banks which provides an unsecured, committed revolving credit facility totaling $125 million, inclusive of a $50 million letter of credit feature. The agreement will expire on July 15, 2007. As of March 31, 2005, $106 million was available in
excess of all borrowings outstanding under or supported by the facility. The credit agreement contains restrictive covenants, including limitations on the incurrence of debt and requirements to maintain certain financial ratios.



21



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##### Table of Contents

In December 2000, the Companys Board of Directors authorized a stock repurchase program of up to
$10 million of Deltic common stock. As of March 31, 2005, the Company had expended $2.1 million under this program, with the purchase of 96,206 shares at an average cost of $22.34 per share; no shares have been purchased in 2005 under this program.
In its two previously completed repurchase programs, Deltic purchased 479,601 shares at an average cost of $20.89 and 419,542 shares at a $24.68 per share average cost, respectively.



Off-Balance Sheet Arrangements, Contractual Obligations, and Commitments



Prior to August 26, 2004, the Company had agreed to a contingent equity
contribution agreement with Del-Tin Fiber and the group of banks from whom Del-Tin Fiber had obtained its $89 million credit facility. Under this agreement, Deltic and the other 50 percent owner of the joint venture had agreed to fund any deficiency
in contributions to either Del-Tin Fibers required sinking fund or debt service reserve, up to a cumulative total of $17.5 million for each owner. In addition, each owner had committed to a production support agreement, under which each owner
had agreed to make support obligation payments to Del-Tin Fiber to provide, on the occurrence of certain events, additional funds for payment of debt service until the plant was able to successfully complete a minimum production test. Both owners
had also agreed, in a series of one-year term commitments, to fund any operating working capital needs until the facility was able to consistently generate sufficient funds to meet its cash requirements.



On August 26, 2004, Del-Tin Fiber refinanced its existing long-term debt by
entering into a credit agreement consisting of a letter of credit and term loan with multiple lending institutions. The funds provided from this credit agreement were used, together with the existing balance in Del-Tin Fibers debt service
reserve and bond sinking fund accounts, to redeem $60 million of its $89 million industrial revenue bonds. Under the new credit agreement, the lenders, on September 1, 2004, loaned Del-Tin Fiber $30 million which will be repayable over five years in
equal quarterly installments, beginning December 31, 2004, and issued on Del-Tin Fibers behalf, a letter of credit in the amount of $29.7 million to support the remaining industrial revenue bonds originally issued in 1998 by Union County,
Arkansas. Concurrent with this event, on August 26, 2004, Deltic executed a guarantee agreement in connection with the refinancing of the debt of Del-Tin Fiber. Under Deltics guarantee agreement, Deltic unconditionally guarantees the due and
punctual payment of 50 percent ($28 million at March 31, 2005) of Del-Tins obligations under its credit agreement. This new credit agreement of Del-Tin Fiber fully replaces Del-Tin Fibers prior credit facility, resulting in Deltics
previous contingent equity contribution agreement of $17.5 million, the production support agreement and the one-year commitment being fully extinguished.



The Company has adopted the provisions of FASB Interpretation (FIN) No. 45, Guarantors Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others, an interpretation of FASB Statements No. 5, 57 and 107 and a rescission of FASB Interpretation No. 34. In accordance with FIN 45, Deltic estimated the fair value of its guarantee
of Del-Tin Fibers credit agreement to be $3.5 million and has included this non-cash amount in the Companys March 31, 2005 Consolidated Balance Sheet as a long-term liability with an offsetting increase in the Companys investment
in Del-Tin Fiber. Deltic is reducing this liability systematically over the life of the credit agreement, as the Company is released from risk under the guarantee. At March 31, 2005, Deltics remaining liability regarding the guarantee was $3.1
million.



The Company has both funded and unfunded
noncontributory defined benefit retirement plans that cover the majority of its employees. The plans provide defined benefits based on years of service and final average salary. Deltic also has other postretirement benefit plans covering
substantially all of its employees. The health care plan is contributory with participants contributions adjusted as needed; the life insurance plan is noncontributory. (For information about material assumptions underlying the accounting for
these plans and other components of the plans, refer to Note 13 to the consolidated financial statements included in the Companys 2004 annual report on Form 10-K.)



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##### Table of Contents

Tabular summaries of the Companys contractual cash payment obligations and other commercial
commitment expirations, by period, are presented in the following tables.



|                                           |  |       |       |            |     |             |      |             |      |           |     
|------------------------------------------ |  | ----- | ----- | ---------- | --- | ----------- | ---- | ----------- | ---- | --------- | ----
|(Millions of dollars)                      |  | Total |       | During2005 |     | 2006to 2007 |      | 2008to 2009 |      | After2009
|                                           |  |       |       |            |    
|Contractual cash payment obligations       |  |       |       |            |     |             |      |             |      |           |     
|Real estate development infrastructure     |  | $     | 2.3   |            | 1.7 |             | 6    |             |     |           |    
|Long-term debt                             |  |       | 89.0  |            |    |             | 19.0 |             | 50.0 |           | 20.0
|Interest on debt1                          |  |       | 21.9  |            | 3.9 |             | 10.0 |             | 5.9  |           | 2.1 
|Retirement plans                           |  |       | 3.5   |            | .6  |             | 1.4  |             | 1.5  |           |    
|Other postretirement benefits              |  |       | 6.8   |            | .3  |             | .8   |             | 1.1  |           | 4.6 
|Other long-term liabilities                |  |       | 1.4   |            |    |             |     |             |     |           | 1.4 
|                                           |  |       |       |            |     |             |      |             |      |           |     
|                                           |  | $     | 124.9 |            | 6.5 |             | 31.8 |             | 58.5 |           | 28.1
|                                           |  |       |       |            |     |             |      |             |      |           |     
|Other commercial commitment expirations    |  |       |       |            |     |             |      |             |      |           |     
|Guarantee of indebtedness of Del-Tin Fiber |  | $     | 28.3  |            | 2.2 |             | 20.9 |             | 5.2  |           |    
|Timber cutting agreements                  |  |       | 1.2   |            | .2  |             | .2   |             | .8   |           |    
|Operating leases                           |  |       | .2    |            |    |             | .1   |             | .1   |           |    
|Letters of credit                          |  |       | 1.0   |            | .4  |             | .4   |             | .2   |           |    
|                                           |  |       |       |            |     |             |      |             |      |           |     
|                                           |  | $     | 30.7  |            | 2.8 |             | 21.6 |             | 6.3  |           |    
|                                           |  |       |       |            |     |             |      |             |      |           |     

---

|1 | Interest commitments are estimated using the Companys current interest rates for the
respective debt agreements over their remaining terms to expiration.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------



Outlook



Deltics
management believes that cash provided from its operations and the remaining amount available under its credit facility will be sufficient to meet its expected cash needs and planned expenditures, including those of the Companys continued
timberland acquisition and stock repurchase programs, additional advances to Del-Tin Fiber, and capital expenditures, for the foreseeable future.



Critical Accounting Policies and Estimates



Critical accounting policies are defined as those that are reflective of significant judgements and uncertainties and potentially result in materially
different results under different assumptions and conditions. The Company has prepared its consolidated financial statements in conformity with accounting principles generally accepted in the United States, which require management to make estimates
and assumptions that affect the reported amounts in these financial statements and accompanying notes. Actual results could differ from those estimates under different assumptions or conditions. The Company has disclosed its critical accounting
policies in its 2004 annual report on Form 10-K, and this disclosure should be read in conjunction with this Form 10-Q. There have been no changes in these identified critical policies, nor have there been any initially adopted accounting policies
having a material impact on reported financial results.



23



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##### Table of Contents

Impact of Recently Effective Accounting Pronouncements



(For information regarding the impact of recently effective accounting
pronouncements, refer to Note 2 to the consolidated financial statements.)



Outlook



Pine sawtimber harvest levels are
expected to be 130,000 to 140,000 tons in the second quarter of 2005 and 550,000 to 575,000 tons for the year. The Companys program to consider sales of timberland identified to be non-strategic or have a higher and better use will continue,
with sales for the year anticipated to be 300 to 500 acres. Finished lumber production and sales volume will continue to be subject to market conditions, and is estimated at 65 to 70 million board feet for the second quarter and 250 to 275 million
board feet for the year. Residential lot sales are projected to be 95 to 105 lots and 290 to 320 lots for the second quarter and the year, respectively.



Certain statements contained in this report that are not historical in nature constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Words such as expects, anticipates, intends, plans, estimates, or variations of such words and similar expressions are intended to identify
such forward-looking statements. These statements reflect the Companys current expectations and involve certain risks and uncertainties, including those disclosed elsewhere in this report. Therefore, actual results could differ materially from
those included in such forward-looking statements.



24



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##### Table of Contents

|Item 3. | Quantitative and Qualitative Disclosures About Market Risk
|------- | ----------------------------------------------------------



The Companys market risk has not changed significantly from that set forth under the caption Quantitative and Qualitative Disclosures About
Market Risk, in Item 7A of Part II of its 2004 annual report on Form 10-K. Those disclosures should be read in conjunction with this Form 10-Q.



|Item 4. | Controls and Procedures
|------- | -----------------------



Evaluation of Disclosure Controls and Procedures



Deltic Timber Corporation (Deltic or the Company) has established disclosure controls and procedures to ensure that material
information relating to the Company, including its consolidated subsidiaries, is made known to the officers who certify the Companys financial reports and to other members of senior management and the Board of Directors.



Based on their evaluation as of March 31, 2005, the Chief Executive Officer
and Chief Financial Officer of the Company have concluded that the Companys disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) are effective to ensure that the information
required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.



Changes in Internal Control Over Financial Reporting



Deltics management, with the Chief Executive Officer and Chief
Financial Officer, have evaluated any changes in the Companys internal control over financial reporting that occurred during the Companys most recent fiscal quarter, and have concluded that there was no change to Deltics internal
control over financial reporting that has materially affected, or is reasonably likely to materially affect, Deltics internal control over financial reporting.



25



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##### Table of Contents



PART II - OTHER
INFORMATION



|Item 1. | Legal Proceedings
|------- | -----------------



From time to time, the Company is involved in litigation incidental to its business. Currently, there are no material legal proceedings.



|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds
|------- | -----------------------------------------------------------



Issuer Purchase of Equity Securities



|                             |  |                                  |  |                              |  |                                                                                |  |                                                                                                   |          
|---------------------------- |  | -------------------------------- |  | ---------------------------- |  | ------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------- | ---------
|Period                       |  | Total Number of Shares Purchased |  | Average Price Paid Per Share |  | Total Number of SharesPurchased as Part ofPublicly Announced Plans or Programs |  | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs1
|Jan. 1 through Jan. 31, 2005 |  |                                 |  |                             |  |                                                                               |  | $                                                                                                 | 7,851,000
|                             |  |                                  |  |                             
|Feb. 1 through Feb. 28, 2005 |  |                                 |  |                             |  |                                                                               |  | $                                                                                                 | 7,851,000
|                             |  |                                  |  |                             
|Mar. 1 through Mar. 31, 2005 |  |                                 |  |                             |  |                                                                               |  | $                                                                                                 | 7,851,000

---

|1 | In December 2000, the Companys Board of Directors authorized a stock repurchase plan of up to $10 million of Deltic common stock. There is no stated expiration
date regarding this authorization.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Item 3. | Defaults Upon Senior Securities
|------- | -------------------------------



None.



|Item 4. | Submission of Matters to a Vote of Security Holders
|------- | ---------------------------------------------------



None.



|Item 5. | Other Information
|------- | -----------------



None.



|Item 6. | Exhibits
|------- | --------



|     |  |                                                                                                   
|---- |  | --------------------------------------------------------------------------------------------------
|     | 
|31.1 |  | Chief Executive Officer Certification Required by Section 302 of the Sarbanes - Oxley Act of 2002.
|     | 
|31.2 |  | Chief Financial Officer Certification Required by Section 302 of the Sarbanes - Oxley Act of 2002.
|     | 
|32   |  | Certification Required by Section 906 of the Sarbanes-Oxley Act of 2002.                          



26



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##### Table of Contents



SIGNATURES



Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                          |  |                                     |  |  |  |                  
|------------------------- |  | ----------------------------------- |  |  |  | -----------------
|DELTIC TIMBER CORPORATION |  |                                     |  | 
|                          |  |                                     | 
|By:                       |  | /s/ Ray C. Dillon                   |  |  |  | Date: May 6, 2005
|                          |  | Ray C. Dillon, President            |  |  |  |                  
|                          |  | (Principal Executive Officer)       |  |  |  |                  
|                          |  |                                     | 
|                          |  | /s/ Clefton D. Vaughan              |  |  |  | Date: May 6, 2005
|                          |  | Clefton D. Vaughan, Vice President, |  |  |  |                  
|                          |  | Finance and Administration          |  |  |  |                  
|                          |  | (Principal Financial Officer)       |  |  |  |                  
|                          |  |                                     | 
|                          |  | /s/ Kenneth D. Mann                 |  |  |  | Date: May 6, 2005
|                          |  | Kenneth D. Mann, Controller         |  |  |  |                  
|                          |  | (Principal Accounting Officer)      |  |  |  |                  



27