August 11, 2011 / 12:47 PM / 7 years ago

UPDATE 1-Stella Jones Q2 profit rises on demand for railway ties

Aug 11 (Reuters) - Stella Jones (SJ.TO), a maker of railway ties and treated wood utility poles for electricity and telecom companies, reported a higher second-quarter profit on strong demand for maintenance and special projects.

The company also raised its semi-annual dividend by 8 percent to 26 Canadian cents a share.

April-June profit was C$17.3 million, or C$1.08 a share, up from C$5.6 million, or 35 Canadian cents a share, a year ago.

Revenue rose 8 percent to C$180.3 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 both regular maintenance, and for new projects.

Analysts, on average, had forecast earnings of 91 Canadian cents, on revenue of C$181.9 million, according to Thomson Reuters I/B/E/S.

The Montreal, Quebec-based company’s shares closed at C$35.50 on Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Viraj Nair)

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