Sales rise 24.7% at Jewett-Cameron
Jewett-Cameron Trading Co. reported $16.11 million in sales for its third fiscal quarter, a 24.7% increase over sales of $12.91 million for the same quarter of 2011.
Net income for the quarter, which ended May 31, was $937,090, compared with net income of $604,324 for the third quarter of 2011.
For the nine-month period, Jewett-Cameron reported sales of $35.1 million compared with sales of $30.8 million for the corresponding nine months a year ago. Due to the favorable ruling from the Oregon Supreme Court regarding the company's lawsuit filed in relation to the acquisition of inventory by Greenwood Products, Jewett-Cameron reversed $1,450,363 of its litigation reserve and accrued interest during the current nine-month period. This contributed to the net income for the nine-month period ended May 31 of $2.28 million, compared to net income of $254,938 in the prior year's period, which was negatively affected by costs from the lawsuit.
"Our continued focus of being a reliable and valuable supplier of quality products to our customers is reflected in our higher sales for both the quarter and nine -month periods," said CEO Don Boone. "We have also successfully test marketed several new products, some of which have begun shipping to customers. However, high material and transportation costs continue to limit our margins."
Jewett-Cameron Trading Co. is a holding company that, through its subsidiaries, operates out of facilities located in North Plains, Ore. Jewett-Cameron Lumber Corp.’s business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood Products is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States.