Stella-Jones Inc. says its pressure treated wood products sales rose 34% during the second quarter, as demand for utility poles and railroad ties were buoyed by the general economic recovery.
Integration of the recently acquired McFarland Cascade Holdings, Inc. also fed the increase. Sales of residential lumber reached $41.3 million, up from $14.0 million a year earlier as a result of additional residential lumber sales of $26.7 million from the McFarland operations.
Sales for the quarter totaled $273.2 million, up 34%, included $75 million from McFarland. Sales of residential lumber reached $41.3 million, up from $14 million a year earlier, including $26.7 million from the McFarland operations.
CEO Brian McManus predicted demand for Stella-Jones core wood products would remain healthy for the remainder of 2013.
"Higher freight volume supports further investment in the North American rail network and demand for utility poles is expected to hold over the short-term," McManus said.
“Utility pole demand should pick-up over the mid-term, as an increasing number of installed poles are approaching the end of their normal service life and will need to be replaced." He said Stella-Jones is investing in additional capacity to meet this anticipated demand.
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