11 August, 23:57
Stella-Jones Inc. announced financial results for its 2Q ended June 30, 2017. Sales reached $594.2 million, up 5.5% from $563.1 million last year, as the company said in the press release received by Lesprom Network.
Operating income stood at $74.5 million, or 12.5% of sales, compared with $83.2 million, or 14.8% of sales in the 2Q of the previous year. The decrease in absolute dollars and as a percentage of sales essentially reflects lower selling prices for railway ties and a less favourable geographical mix in the utility pole category.
Net income for the 2Q 2017 was $48.9 million, or $0.71 per diluted share, versus $54.7 million, or $0.79 per diluted share, in the 2Q 2016.
For the six-month period ended June 30, 2017, sales amounted to $991.2 million, versus $984 million for the corresponding period a year earlier.
2H 2017 net income totalled $74.8 million, or $1.08 per diluted share, versus $89.7 million, or $1.30 per diluted share, in the prior year.
“Stella-Jones generated solid operating results in the second quarter. This performance was driven by higher railway tie volume stemming from earlier than expected deliveries for certain orders, partially offsetting the impact of lower year-over-year pricing in this product category. In addition, healthy demand in the utility pole category reflects sales synergies stemming from Stella-Jones’ expansion in the southeastern United States over the past two years,” 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.