November 11, 2011 / 12:13 PM / 6 years ago

UPDATE 1-Stella Jones Q3 rises on higher demand

Nov 11 (Reuters) - Stella Jones reported a higher quarterly profit on strong demand for its core railway tie and utility pole businesses.

July-September profit rose to C$16.6 million, or C$1.03 cents a share, compared with C$12.4 million, or 78 Canadian cents a share, last year.

Revenue rose 13 percent to C$181.8 million. Railway tie sales rose 9.7 percent to C$92.3 million.

The company’s products, such as railway ties -- used as a base for railway tracks -- and utility poles, are used by railroad, electric utility and telecom companies for regular maintenance and new projects.

“Despite recent volatility in the macro-economic environment, we expect demand for our core products to remain solid in the fourth quarter of 2011,” Chief Executive Brian McManus said in a statement.

The Montreal, Quebec-based company’s shares, which have risen more than a fifth this year, closed at C$39.75 on Thursday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Viraj Nair)

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