Stella Jones: Profits Up, Earnings Down

By 250 News

Prince George, B.C. -  Stella Jones Inc. has announced its second quarter profits are up almost 30-percent compared to the same period in 2009.

Sales were $167-million dollars for the period, an increase of $38-million over last year.

The Montreal-based company has 15 wood treatment facilities, including one in Prince George, and is the leading North American producer of railway ties and wood utility poles.  The company bought U.S.-based Tangent Rail Corporation on April 1st.  Stella Jones President and CEO, Brian McManus, says, "The acquisition of Tangent had an immediate positive effect on our top line."

That positive effect was to the tune of $42-million dollars, but, adjusting for year-over-year currency fluctuations, sales increased approximately four-precent compared to last year's quarter.

The company's net earnings were down to $5.6-million dollars, or 35-cents a share, from $11-million a year earlier, as this year's Q2 results include non-recurring expenses of $5.4-million dollars of asset impairment charges and severence related to a plant in West Virginia.

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