MONTREAL, QUE – Treated wood processor Stella-Jones Inc. reported a 7.5% sales increase of $13.6 million for its third quarter ended Sept. 30.
Sales for the quarter totaled $195.4 million. The company said revenues from the Russellville, AR, operating facility acquired from Thompson Industries in December 2011 contributed to its growth.
"Stella-Jones delivered a strong operating and financial performance in the third quarter,” Brian McManus, Stella-Jones president and CEO, said in a statement. “Our constant focus on optimizing efficiency continues to yield solid year-over-year improvements in net income and cash flow. Demand for our core products remains solid, as we leverage the strengths of our network and further expand our reach across the North American market for treated wood products."
The company said favorable weather and increased demand in Western Canada resulted in residential lumber sales of $12.3 million, up 14.9% from $10.7 million a year earlier.
Sales for the nine-month period are also up 13.3%, to $558.1 million compared to one year ago.
"Driven by favorable fundamentals, we expect demand for our core products to remain solid in the last quarter of 2012 and in 2013,” McManus said.
The company announced last month it would acquire competitor McFarland Cascade Investment Co. in a deal valued at $230 million. Also in November Stella-Jones began construction of a new wood treating facility on a 40-acre tract of land in Cordele, GA, approximately 140 miles south of Atlanta. The company said the project represents an investment of approximately $11.0 million for Stella-Jones.
“These expansion initiatives will strengthen our position as a leading North American supplier of treated wood products, as well as create additional value for shareholders," McManus said.
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