Stella-Jones sees railroad tie business growing
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Photo By Stella-Jones, financials

MONTREAL- Railroad tie and utility pole manufacturer Stella-Jones reports sales of $594.2 million second quarter, up 5.5 percent from the year ago. Net income was $48.9 million, down from $54.7 million last year.
 
The performance was driven by higher railway tie volume boosted by early deliveries for orders, said Brian McManus, CEO.
 
"Healthy demand in the utility pole category reflects sales synergies stemming from Stella-Jones' expansion in the southeastern United States over the past two years," said McManus. Stella-Jones acquired Boatright Railroad Products, an Alabama manufacturer of railroad ties, in 2014.
 
Railway tie sales amounted to $214.2 million, compared with sales of $216.3 million in last year's second quarter. Excluding the conversion effect, railway tie sales decreased approximately $10.4 million, or 4.8 percent in the period, as lower pricing was partially offset by increased volume due to the early delivery of certain tie orders.
 
Utility pole sales reached $167.5 million in the second quarter of 2017, representing an increase of 17.3 percent over sales of $142.8 million a year ago. Excluding the contribution from acquisitions and the currency conversion effect, sales increased approximately $3.7 million, or 2.6 percent, reflecting organic sales growth in the southeastern United States.
 
Sales in the residential lumber category remained stable, reaching $153.2 million in the second quarter of 2017, versus $152.1 million a year earlier. This stability reflects higher selling prices due to increased untreated lumber costs, offset by lower volumes as a result of less favourable weather in Canada during the second quarter of 2017 compared to the same period last year.
 
Stella-Jones Inc. (TSX:SJ) is a leading producer and marketer of pressure treated wood products. It supplies North America's railroad operators with railway ties and timbers, and the continent's electrical utilities and telecommunication companies with utility poles. Stella-Jones also manufactures and distributes residential lumber and accessories to retailers for outdoor applications, as well as industrial products for construction and marine applications. 

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Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.