(Montreal) The manufacturer of industrial wood products Stella-Jones saw its sales and net profit increase for its first quarter of 2024 compared to that of last year.
The Montreal company recorded net income of 77 million, or $1.34 per share, for the quarter ended March 31, compared to 60 million, or $1.03 per share, for the same period in 2023.
Stella-Jones reports that its sales reached 775 million for the first three months of 2024, an increase of 9% compared to the first quarter of last year.
The company attributes the increase to organic sales growth generated by its infrastructure businesses, such as utility poles, railway ties and industrial products.
Conversely, the company, however, experienced a decline in its sales of residential lumber as well as logs and lumber, compared to its results for the first quarter of 2023.
The manufacturer mentions that the infrastructure product categories benefited from an increase in sales prices from one year to the next, while those of residential lumber were rather affected by the drop in prices. lumber on the market.
The President and CEO of Stella-Jones, Éric Vachon, said he was satisfied with the performance “which constitutes a strong start to the year”.
“While we have seen a slowdown in the pace of purchases by utility companies in recent quarters, we are confident that multi-year commitments of additional volumes secured from existing and new customers will materialize and highlight the potential sustainable growth of our activities,” he commented in a press release.
Furthermore, the company declares a quarterly dividend of $0.28 per common share payable to shareholders.