Stella-Jones Inc. announced financial results for its 1Q ended March 31, 2018. Sales reached $398.8 million, an increase of 0.5%, when compared to $396.9 million for the same period last year, as the company said in the press release received by Lesprom Network.
Operating income stood at $35.5 million, or 8.9% of sales, compared with $40.8 million, or 10.3% of sales in the 1Q of the previous year. Net income for the 1Q 2018 was $23.1 million, or $0.33 per diluted share, down from $25.9 million, or $0.37 per diluted share, in the 1Q 2017.
“1Q results were in line with our expectations. Our railway ties category continued to face headwinds from pricing pressures, while sales in our utility pole product category increased on replacement programs and our residential lumber category benefited from an increased pricing environment. We continued to follow our strategy of continental expansion with two tuck-in acquisitions, which further reinforced the reliability of our production network and increased our distribution capabilities. Looking forward, we continue to expect sales and operating margins to improve progressively in 2018, when compared to last year, with operating margins stronger in the second half,” said Brian McManus, President and CEO.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products. The Company supplies North America’s railroad operators with railway ties and timbers, and the continent’s electrical utilities and telecommunication companies with utility poles.
