Stella-Jones Inc. provided preliminary unaudited results for the 4Q and fiscal year ended December 31, 2016. Stella-Jones is providing this update to inform of lower year-over-year financial results in the 4Q. For this period, the Company is currently anticipating sales in the range of $340-$342 million, compared with $357.5 million last year.

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Stella-Jones expects 4Q sales of $340-$342 million

Stella-Jones Inc. provided preliminary unaudited results for the 4Q and fiscal year ended December 31, 2016. Financial results for the 4Q and fiscal year ended December 31, 2016 will be reported on March 17, 2017.

Stella-Jones is providing this update to inform of lower year-over-year financial results in the 4Q. For this period, the Company is currently anticipating sales in the range of $340-$342 million, compared with $357.5 million last year, while operating income is expected to be between $27 and $29 million, versus $48.3 million a year ago.

The year 2016 will mark the sixteenth consecutive year of sales and net income growth for Stella-Jones. For the fiscal year ended December 31, 2016, consolidated sales are expected to show a year-over-year increase of nearly 18%, reaching close to $1.84 billion, while operating income should be between $232 and $234 million, up from $220.1 million last year.

The year-over-year decrease in sales and profitability in the 4Q 2016 was primarily driven by lower railway tie demand at the end of the year, as anticipated in management's discussion and analysis for the 3Q 2016. For the current fiscal year, total sales and operating margins are expected to remain comparable to 2016, assuming stable currencies.

Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.