Canadian industrial treated wood products manufacturer Stella-Jones Inc saw its net profits grow to C$8.1m in the second quarter from C$5.4m a year earlier.
Sales were up 37.6% to C$84.5m, but most of the increase was accounted for by acquisitions rather than organic growth.
Stella-Jones blamed a slight decrease in organic sales on temporary difficulties securing railcars for product shipment during strikes in Canada’s railway network.
Utility pole sales grew during the quarter by 67.8% to C$35.9m, thanks to the acquisition of sites in Alberta and Washington. Railway ties sales declined C$0.4m to C$31.6m, partially due to minor start-up issues with a new treatment cylinder.
Residential lumber sales rose to C$12.5m helped by a resilient renovation market. Industrial lumber sales declined by 7.3% to C$4.5m.
“We are staisifed with our solid performance in the second quarter despite the temporary external logistical disturbances, which have since been resolved,” said Brian McManus, president and CEO of Stella-Jones.