Nov 16, 2009. /Lesprom Network/. Stella-Jones has reported net quarterly earnings of $8.3 million, up 21.5% from last year. Sales in the 3Q reached $104.7 million, a decrease of $7.2 million, or 6.4% from last year's sales of $111.8 million, mainly reflecting lower demand in the railway tie product category, as ForestTalk reported. "As a result of our constant focus on cash generation and debt reduction, Stella-Jones produced a solid cash flow, which, combined with working capital improvements, reduced short- and long-term debt by an aggregate amount of $24.4 million during the quarter," mentioned George Labelle, Senior Vice-President and CFO. Challenging market conditions continue to prevail in the railway tie market as Class 1 railway operators are deferring railway tie deliveries until the first quarter of next year in order to keep inventory levels down. Also, certain special projects, which often generate increased activities in the short line and contractor markets, have been put on hold until economic and financing conditions recover. Meanwhile, conditions remain generally more stable in the North American utility pole market. Nevertheless, given uncertainty about the timing of government driven infrastructure projects, Management believes that sales will soften in the short-term until such time as general economic conditions improve. Stella-Jones Inc. is an North American producer and marketer of industrial pressure treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electrical utilities and telecommunications companies. The Company also provides treated consumer lumber products and customized services to lumber retailers and wholesalers for outdoor applications.