Stella-Jones Reports 2019 Second Quarter Results

Financial News
Typography
  • Sales were stable at $661.8 million, driven by healthy demand for utility poles
  • EBITDA up 18% to $94.2 million, supported by increased gross margins as well as by the adoption of IFRS 16, Leases
  • Net income and diluted EPS increased to $52.3 million and $0.76 per share
  • General outlook of higher overall year-over-year sales and margins confirmed for 2019

Montreal, Quebec – August 7, 2019 - Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) today announced financial results for its second quarter ended June 30, 2019.

“We are pleased with our second quarter 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 Chief Executive Officer.

“We continued to follow our strategy of continental expansion by completing a tuck-in acquisition in Ontario in April and finalizing our plant expansion in Cameron, Wisconsin. For 2019, we expect higher year-over-year sales and margin improvement over last year. Our strategy remains intact as we will continue to focus on optimizing our operations across the organization while seeking acquisitions to further expand our presence in our core markets,” stated Eric Vachon, Senior Vice-President and CFO.

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Source: Stella-Jones

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