Stella-Jones Inc. announced financial results for its 2Q ended June 30, 2019. Sales reached $661.8 million, stable, versus sales of $662.3 million for the corresponding period last year, as the company said in the press release received by Lesprom Network.
Operating income was $76.7 million, or 11.6% of sales, compared with $71 million, or 10.7% of sales, in the 2Q of the previous year. The increase versus last year is explained by improved pricing and better operational efficiencies in the U.S. Southeast.
Net income for the 2Q 2019 reached $52.3 million, or $0.76 per diluted share, versus net income of $48.1 million, or $0.69 per diluted share, in the corresponding period last year.
For the first six months of 2019, sales amounted to $1.10 billion, versus $1.06 billion for the corresponding period last year.
Operating income reached $122.4 million, or 11.1% of sales, compared with $106.5 million, or 10% of sales last year. Net income totalled $81.7 million, or $1.18 per diluted share, versus $71.2 million, or $1.03 per diluted share last year.
“We are pleased with our 2Q results given the short-term challenges experienced in certain markets. Sales were stable as higher sales prices and healthy demand for utility poles, combined with the positive currency conversion effect, were offset by lower volume and pricing in logs and lumber, temporary shipment delays in railway ties and wet weather conditions in residential lumber. Notwithstanding this operating environment, we delivered increased profitability driven by improved pricing and better operational efficiencies in the U.S. Southeast,” said Brian McManus, President and CEO.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
