Stella-Jones provides preliminary results for 2016
By Stella-Jones Inc.
Jan. 16, 2017 - Stella-Jones Inc. has provided preliminary unaudited results for the fourth quarter and fiscal year ended Dec. 31, 2016. These preliminary results are based on information available to the company as of Jan. 13, 2017 and are subject to revision upon finalizing the audit of Stella-Jones' annual consolidated financial statements. Financial results for the fourth quarter and fiscal year ended Dec. 31, 2016 will be reported on March 17, 2017.
Stella-Jones is providing this update to inform of lower year-over-year financial results in the fourth quarter. For this period, the company is currently anticipating sales in the range of $340.0-$342.0 million, compared with $357.5 million last year, while operating income is expected to be between $27.0 and $29.0 million, versus $48.3 million a year ago.
2016 will mark the sixteenth consecutive year of sales and net income growth for Stella-Jones. For the fiscal year ended Dec. 31, 2016, consolidated sales are expected to show a year-over-year increase of nearly 18.0 per cent, reaching close to $1.84 billion, while operating income should be between $232.0 and $234.0 million, up from $220.1 million last year.
The year-over-year decrease in sales and profitability in the fourth quarter of 2016 was primarily driven by lower railway tie demand at the end of the year, as anticipated in management's discussion and analysis for the third quarter of 2016. For the current fiscal year, total sales and operating margins are expected to remain comparable to 2016, assuming stable currencies.