Stella-Jones' FY 2019 sales rose to $2,169 million, up $45.1 million compared to the previous year. Higher pricing for utility poles and railway ties, and the increase in volumes for industrial products were more than offset by the lower residential lumber and logs and lumber sales, and the decrease in shipments for railway ties.
FY 2019 operating income was $242.3 million, or 11.2% of sales, compared to $206.3 million, or 9.7% of sales, last year.
EBITDA in 2019 grew to $312.9 million, up 28%, compared to $244.4 million reported in 2018, reflecting an EBITDA margin of 14.4%. The increase was mainly driven by stronger pricing and the positive impact of the adoption of IFRS 16.
Sales generated in the 4Q 2019 amounted to $439.9 million, compared to sales of $432.8 million for the same period in 2018.
4Q 2019 operating income rose to $41.4 million, or 9.4% of sales, compared to $31.8 million, or 7.4% of sales, in the same period last year. In the 4Q 2019, operating income benefitted from improved pricing and a decrease in the mark-to market losses related to diesel and petroleum derivative commodity contracts. These factors were partially offset by lower utility pole volumes and higher production costs, mainly for railway ties.
4Q 2019 net income was up 26% to $27.7 million, or $0.41 per diluted share, compared to $20.6 million, or $0.30 per share, in the prior year.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
