Canada’s Stella-Jones, which makes treated wood products for railroad, electricity and telecom companies, reported a 26 percent rise in fourth-quarter profit helped by strong demand for its railway ties.

The company, which also makes utility poles, said it will now pay a quarterly dividend instead of the semi-annual dividend it used to pay. It will pay 15 cents as quarterly dividend on April 30.

Fourth-quarter profit rose to $13.4 million, or 83 cents a share, from $10.7 million, or 67 cents a share, a year ago.

Sales rose 11 percent to $147.5 million. Sales of railway ties -- used as a base for railway tracks -- were up 19 percent at $74.4 million.

Stella Jones said it expects demand for its core products to remain solid in 2012, as North American railroad operators continue to invest in their network.

The Montreal, Quebec-based company’s shares closed at $41.90 on Thursday on the Toronto Stock Exchange.

Source:Reuters

Posted and edited by Riona, Hanbao News Department

Contact: rionach@cltimber.com