Stella-Jones Q1 Earnings Up, Plans To Acquire Locweld For C$58 Mln

(RTTNews) - Stella-Jones Inc. (SJ.TO), a Canadian manufacturer of pressure-treated wood products, on Wednesday announced that net income increased in the first quarter compared with the previous year. Additionally, the company has signed an agreement to acquire Locweld Inc.

For the first quarter, net income increased to C$93 million from C$77 million last year.

Earnings per share were C$1.67 versus C$77 last year.

Eight analysts, on average, had expected the company to report loss of C$1.16 per share. Analysts' estimates typically exclude special items.

EBITDA increased to C$179 million from C$156 million in the previous year.

Operating income increased to C$143 million from C$124 million in the prior year.

Sales decreased to C$773 million from C$775 million last year.

Further, on May 6, the Board of Directors announced a quarterly dividend of C$0.31 per common share, payable on June 20, to shareholders on record June 2.

The Company further said it has signed an agreement to acquire Locweld Inc., a manufacturer of lattice towers and steel transmission poles, for C$58 million on a cash- and debt-free basis.

Additionally, with up to C$7 million in payments based on performance milestones. The deal will be financed through existing credit lines and is expected to close today.

Tuesday, Stella-Jones had closed 0.30% lesser at $67.40 on the Tooroto Stock Exchange.