Stella-Jones Inc . announced financial results for its 3Q ended September 30 , 2017 . Sales reached $ 517.6 million , up 1 % from $ 512.6 million last year . Acquisitions contributed sales of approximately $ 2.1 million , while the conversion effect from fluctuations in the value of the Canadian dollar , Stella- Jones ’ reporting currency , versus the U . S . dollar , had a negative impact of $ 9.9 million on the value of U . S . dollar denominated sales . Excluding these factors , sales increased by $ 12.9 million , or 2.5 %. |
3Q 2017 operating income stood at $ 63.1 million , or 12.2 % of sales , compared with $ 67.3 million , or 13.1 % of sales in the 3Q of the previous year . The decrease as a percentage of sales essentially reflects lower selling prices for railway ties and a less favourable geographical mix in the utility pole category .
Net income for the 3Q 2017 was $ 42 million , versus $ 45.7 million in the 3Q 2016 .
Brian McManus , President and CEO , said : “ Stella-Jones ’
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growing reach in the utility pole and residential lumber markets led to solid sales growth in these product categories during the 3Q , more than offsetting the effect of lower year-over-year pricing in the railway tie product category . Furthermore , a strong operating cash flow generation allowed us to significantly reduce our long-term debt and positions us for future expansion .”
For the nine-month period ended September 30 , 2017 , sales amounted to $ 1.51 billion , versus
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$ 1.50 billion for the corresponding period a year earlier .
Operating income reached $ 178.4 million , or 11.8 % of sales , compared with $ 205.1 million , or 13.7 % of sales , last year . Net income totalled $ 116.8 million , versus $ 135.4 million in the prior year .
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