Stella-Jones Inc. announced financial results for its 2Q ended June 30, 2018. Sales reached $662.3 million, versus sales of $594.2 million for the corresponding period last year, as the company said in the press release received by Lesprom Network.
2Q 2018 operating income stood at $71 million, or 10.7% of sales, compared with $74.5 million, or 12.5% of sales in the corresponding period last year. Net income for the 2Q 2018 was $48.1 million, or $0.69 per diluted share, versus $48.9 million, or $0.71 per diluted share, in the 2Q 2017.
Brian McManus, President and CEO, said: “2Q results demonstrated strong sales growth and quarter-over-quarter improvement in operating margins. Sales increased in the utility pole, residential lumber and logs and lumber product categories driven by increased sales prices and market demand. This performance was partially offset by temporary headwinds that have continued in our railway tie product category, primarily related to the transitioning of a Class 1 railroad customer to a full-service program. We are also pleased to see our EBITDA margins improve sequentially by 1.1% over the 1Q, in-line with our expectations.”
For the first six months of 2018, sales amounted to $1.1 billion, versus $991.1 million for the corresponding period last year.
1H 2018 operating income reached $106.5 million, or 10% of sales, compared with $115.3 million, or 11.6% of sales last year. Net income totalled $71.2 million, or $1.03 per diluted share, versus $74.8 million, or $1.08 per diluted share last year.
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.
