Sales of residential lumber totalled $128 million, up from $112.3 million a year earlier, driven by solid demand in Western Canada and the United States due to the general improvement in the North American economy. Industrial product sales stood at $89.4 million, compared with $58.1 million last year, reflecting the contribution from acquisitions and increased sales of rail-related industrial products. Finally, non-pole-quality log sales were $31.6 million, down from $41.1 million a year ago due to the timing of timber harvesting.
Operating income rose 12.3% to $155.7 million, or 12.5% of sales, versus $138.7 million, or 13.7% of sales, last year.
Net income for the year increased 12.2% to $103.8 million or $1.50 per share, fully diluted, compared with $92.5 million or $1.34 per share, fully diluted, in 2013.
4Q sales amounted to $289.9 million, up 30.3% from $222.5 million for the same period last year. Residential lumber sales reached $17.9 million, up from $13.8 million last year, driven by solid demand in most markets. Industrial product sales were $18.7 million, versus $12.7 million a year ago, as a result of acquisitions and higher sales of rail-related products.
Operating income was $33.9 million, or 11.7% of sales, versus $29.5 million, or 13.3% of sales, last year.
Net income for the 4Q rose 16.6% to $23 million, or $0.33 per share, fully diluted, compared with $19.7 million, or $0.29 per share, fully diluted, last year.
"Driven by healthy demand for its core products and a strong market reach, 2014 marked the fourteenth consecutive year of growth for Stella-Jones. Moreover, a relentless focus on improving the efficiency of our growing network partially mitigated headwinds from the tighter market for untreated railway ties that affected the industry for most of the year. We are pleased with these results which once again confirm Stella-Jones' solid reputation as a leading supplier to its core markets and as an enduring source of value creation for its shareholders," 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.
