MONTREAL, QUEBEC - Stella-Jones Inc. (TSX:SJ), a maker of railroad ties and utility poles, says preliminary unaudited results for the fourth quarter and fiscal year ended December 31, 2016 will show a $340 to $342 million sales for the year.
Subject to revision upon finalizing the audit of Stella-Jones' annual consolidated financial statements, the preliminary figures show a decline in fourth quarter revenue from $357.5 million the year prior. Financial results for the fourth quarter and fiscal year ended December 31, 2016 will be reported on March 17, 2017.
Stella-Jones also said operating income for the quarter is expected to be between $27.0 and $29.0 million, a significant drop from $48.3 million a year ago.
The year 2016, however, will mark the sixteenth consecutive year of sales and net income growth for Stella-Jones. Consolidated sales are expected to show a year-over-year increase of nearly 18 percent, reaching close to $1.84 billion, while operating income should be between $232 and $234 million, up from $220.1 million last year.
The decrease in sales and profitability in the fourth quarter of 2016 was primarily driven by lower railway tie demand at the end of the year, as anticipated in management's discussion and analysis for the third quarter of 2016. For the current fiscal year, total sales and operating margins are expected to remain comparable to 2016, assuming stable currencies.
Stella-Jones Inc. (TSX:SJ) is a leading producer and marketer of pressure treated wood products. The Company 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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