Jewett-Cameron Trading Co. reported sales for the second quarter of fiscal 2012 totaling $11.75 million compared to sales of $11.86 million for the second quarter of fiscal 2011.
Operational income for the quarter, which ended Feb. 29, 2012, was $672,436 compared to $755,337 in the year-ago quarter.
In February 2012, the company received a favorable decision from the Oregon Supreme Court in the company's lawsuit filed in relation to the acquisition of inventory by Greenwood Products. As a result, the current quarter's results include a reversal of litigation reserves of $1,443,629 and interest expense of $16,023. These amounts have been treated as a one-time gain and contributed to net income after other items and income taxes.
For the six month period, Jewett-Cameron reported sales of $19.0 million compared to sales of $17.9 million for the same period a year ago. Net income after other items and income taxes was $1.35 million compared to a net loss of $349,386 a year ago. The current six month period was positively affected by the reversal of litigation reserves, while the year-ago six month period was negatively affected by the company accruing $1,370,151 to the litigation reserve.
"We are pleased with the higher level of sales for the six-month period and the favorable ruling by the Oregon Supreme Court," said CEO Don Boone. "However, the higher material and transportation costs continue to negatively affect our margins and net income."
Jewett-Cameron Trading Co. is a holding company that, through its subsidiaries, operates out of facilities located in North Plains, Oregon. 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.