Stella-Jones' sales for the 3Q 2021 reached $679 million, down $63 million, versus sales of $742 million for the corresponding period last year. Net income for the 3Q 2021 was $34 million, or $0.52 per share, compared to net income of $79 million, or $1.17 per share, in the corresponding period of 2020.
“Our 3Q results reflect the impact of the normalization of lumber market conditions and the increase in the cost of untreated railway ties which outpaced price adjustments. With the improvement in pricing and demand for residential lumber in the latter part of the quarter and the continued strong sales growth for utility poles, we are confident that we will deliver solid EBITDA in 2021," stated Éric Vachon, President and CEO of Stella-Jones. "We are also excited about the prospects for 2022. The recently-announced agreements to purchase wood treating facilities in the U.S. southeast will expand our capability to supply the needs of North America’s utility pole industry and strengthen our leadership position in the product categories that we serve."
For the first nine months of 2021, sales amounted to $2.21 billion, versus $2.02 billion for the corresponding period last year. The year-over-year sales growth in pressure-treated wood stems from the significant rise in the market prices of lumber, compared to the same period last year, offset in part by a decrease in residential lumber demand.
Operating income was $294 million, or 13.3% of sales, compared with $259 million, or 12.8% of sales last year. EBITDA rose to $348 million, up 10%, compared to $315 million reported in the prior year period, reflecting an EBITDA margin of 15.8%. Net income totaled $205 million, or $3.14 per share, versus $176 million, or $2.60 per share last year.
Stella-Jones Inc. is a leading producer and marketer of pressure-treated wood products. The Company supplies North America’s electrical utilities and telecommunication companies with utility poles, and the continent’s railroad operators with railway ties and timbers. Stella-Jones also manufactures and distributes residential lumber and accessories to retailers for outdoor applications.
