Stella-Jones Inc. announced financial results for its 1Q ended March 31, 2019. Sales for the 1Q 2019 reached $440.7 million, up 10.5% versus sales of $398.8 million for the corresponding period last year, as the company said in the press release received by Lesprom Network.
Operating income was $45.7 million, or 10.4% of sales, compared with $35.5 million, or 8.9% of sales, in the 1Q of the previous year. The increase versus last year is explained by greater sales volumes, improving margins and a non-cash mark-to-market gain on derivative commodity contracts.
Net income for the 1Q 2019 reached $29.5 million, or $0.43 per diluted share, versus net income of $23.1 million, or $0.33 per diluted share, in the corresponding period last year.
“1Q results demonstrated strong sales and profitability growth, which were primarily driven by the sales price and market demand increases in the utility pole and railway tie product categories, as well as acquisitions completed last year combined with the currency conversion effect. These factors were partially offset by lower lumber costs which impacted sales in the residential lumber and logs and lumber product categories. We continued to follow our strategy of continental expansion, having completed a tuck-in acquisition in Ontario in April which further expands our network of residential lumber treating facilities in Canada. Stella-Jones continues to build on its healthy financial position. Looking forward, we expect to generate higher year-over-year sales and margin improvement over last year. As always, we will continue to remain focused on optimizing our operations across the organization while diligently seeking market opportunities in all product categories,” said Brian McManus, President and CEO.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
