Stella-Jones (TSE:SJ), which produces wood used for railway tracks and utility poles, said Friday its fourth quarter profit more than tripled on strong product demand.
For the fourth quarter ended December 31, the Canadian company earned $10.8 million, or 67 cents per diluted share, up from $3 million, or 24 cents per diluted share, for the year-ago period.
Sales were $133 million, up from $65 million, reflecting the company’s acquisition of Tangent Rail last April as well as strong demand for railway ties. Gross margin jumped to 20.5% from 16.3%.
The results trumped analyst estimates of 52 cents a share on revenues of $115.6 million.
Railway tie sales rose 182% year-over-year to $62.4 million while utility pole sales reached $48.7 million, compared with $31.1 million last year.
Meanwhile, industrial product sales rose 96% to $19.8 million and residential lumber sales rose 5.6% to $2.2 million.
For the entire 2010, the company had net earnings of $34.4 million or $2.26 per diluted compared with $30.1 million, or $2.37 per diluted share, in 2009. Revenues were $561 million, up 36.5% year-over-year from $411.1 million.
Looking forward, the company said demand for its products is expected to increase for the year ahead as economic conditions improve.
CEO Brian McManus also said the company is looking to make more acquisitions.
The company also declared today a semi-annual dividend of 24 cents per share payable to its shareholders in May.