MONTREAL – Pressure treated wood producer Stella-Jones says it earned $29.5 million in the third quarter as sales grew 25 per cent on acquisitions and the benefit of a higher U.S. dollar.
The Montreal-based company (TSX:SJ) which sells railway ties and utility poles earned 43 cents per share for the three months ended Sept. 30. That compared with $27.6 million or 40 cents per share a year ago.
Revenues increased to $357.3 million from $285.3 million.
The acquisition of Pacific Wood Preserving Companies and Boatright Railroad Products in the past year added $23.2 million to revenue, while a a higher U.S. dollar added $8.9 million. Excluding those factors, sales increased about 14 per cent.
Railway tie sales were up nearly 50 per cent to $148.8 million. Excluding acquisitions and one-time issues, sales were up nearly $20 million or 17 per cent on higher demand and prices.
Sales of utility poles reached $127.6 million, up from $112.8 million last year.
Residential lumber sales increased 10.6 per cent to $43.5 million on improved demand in Western Canada and the United States. Industrial product sales were $29.7 million compared to $16.5 million a year ago.
Analyst Ben Vendittelli of Laurentian Bank Securities said the results were in line with forecasts.
“Healthy demand for Stella’s core products is expected for the balance of the year and 2015,” he wrote in a report.