May 03, 2012. /Lesprom Network/. Stella-Jones Inc. announced financial results for its 1Q ended March 31, 2012. Sales reached $158.8 million, an increase of $28.3 million, or 21.7% over last year's first-quarter sales of $130.5 million, as the company said in a press release received by Lesprom Network. The operating facility acquired from Thompson Industries, Inc. on December 7, 2011 contributed sales of approximately $9.6 million, while the conversion effect from fluctuations in the value of the Canadian dollar, Stella-Jones' reporting currency, versus the U.S. dollar, increased the value of U.S. dollar denominated sales by about $1.5 million when compared with the previous year. Excluding the acquisition and currency effects, sales increased approximately $17.2 million, or 13.2%. Operating income was $24.1 million, or 15.2% of sales, compared with $14.4 million, or 11.1% of sales, last year. The increase in absolute dollars essentially reflects higher business activity and the addition of the Thompson operations, while the increase as a percentage of sales mainly stems from a better absorption of fixed costs resulting from higher business activity and from greater efficiency throughout the Company's plant network. Net income for the period increased 76.5% to $15 million, or $0.94 per share, fully diluted, compared with $8.5 million, or $0.53 per share, fully diluted, in the first quarter of 2011. Cash flow from operating activities, before changes in non-cash working capital components and interest and income tax paid, rose 58.1% to $27.2 million. "Robust demand for Stella-Jones' core railway tie and utility pole products led to significant increases in sales and operating profitability in the 1Q 2012," said Brian McManus, President and CEO. "This improved performance reflects the wider reach of our continental network and continued efficiency gains. More favourable weather in most regions of North America, compared with the same period last year, also allowed for a greater number of projects requiring our products to be carried out early in the year." 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, timbers and recycling services; and the continent's electrical utilities and telecommunications companies with utility poles.