Stella-Jones Inc. announced financial results for its 2Q ended June 30, 2016. 2Q 2016 sales reached $563.1 million, up 31.5% from $428.1 million a year ago, as the company said in the press release received by Lesprom Network.
2Q operating income reached $83.2 million, or 14.8% of sales, versus $61.1 million, or 14.3% of sales, last year. The increase in absolute dollars stems from increased business activity, the contribution from acquisitions and the effect of currency translation.
Net income for the 2Q 2016 increased 40.4% to $54.7 million, or $0.79 per diluted share, compared with $38.9 million, or $0.56 per diluted share, in the 2Q 2015.
"Stella-Jones' strong sales growth in the 2Q stems from its greater reach in the residential lumber category and sustained demand in the railway tie category. Further improvement in operating profitability reflects economies of scale generated by higher volumes as well as our ongoing focus on optimizing network efficiencies," said Brian McManus, President and CEO.
For the six-month period ended June 30, 2016, sales amounted to $984 million, versus $768.8 million for the corresponding period a year earlier.
Operating income stood at $137.8 million, or 14% of sales, compared with $108.8 million, or 14.2% of sales, a year earlier.
Net income for the first six months of 2016 increased 29.9% to $89.7 million, up from $69 million in the first six months of 2015.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
