MONTREAL – Stella-Jones Inc. (TSX:SJ) says strong demand for railway ties and utility poles helped profits grow nine per cent in the second-quarter, with an extra sales boost coming from its recent acquisitions.
The Montreal-based wood producer reported net income of $28.8 million, or 42 cents per share, an increase from $26.4 million, or 38 cents per share a year ago.
Sales grew to $344.8 million from $280.9 million in the comparable period.
The company says railway tie sales grew 18.1 per cent to $141.5 million, while utility pole sales were up 28 per cent to $121.6 million.
The results were helped by the purchase of the Pacific Wood Preserving Companies last November, which contributed $12 million to revenues, while the purchase of Boatright Railroad Products in May added another $3.7 million to the results.
Stella-Jones Inc. (TSX:SJ) is a leading producer and marketer of pressure treated wood products. It supplies railroad operators with railway ties and timbers, and electrical utilities and telecommunication companies with utility poles. It also sells residential lumber to retailers and wholesalers.