Stella-Jones' sales for the 1Q reached a record $503 million, up $62 million, or 14%, versus sales of $441 million last year. Pressure-treated wood sales rose by $59 million while sales for logs and lumber increased by $3 million. The increase in pressure-treated wood sales, excluding the positive impact of the currency conversion of $3 million, was $56 million, or 13%, and was driven by higher demand and improved sales prices for utility poles, increased volumes for residential lumber and industrial products and higher sales prices for railway ties.
Net income was $28 million, or $0.41 per diluted share, versus net income of $29 million, or $0.43 per share, last year.
“We had a solid start to the year with sales up a robust 14%. Sales growth for our pressure-treated wood products was supported by stronger demand for utility poles and residential lumber, and improved pricing for utility poles and railway ties. While higher sales led to a 19% increase in gross profit, EBITDA was unfavourably impacted by the mark-to-market variation in diesel derivative commodity contracts. As a result, EBITDA remained stable compared to the same period last year,” stated Éric Vachon, President and CEO of Stella-Jones.
Stella-Jones Inc. is a leading producer and marketer of pressure-treated wood products.
