Net income during Goodfellow Inc.'s (Delson, Quebec) third quarter was C$1.2 million, down about 68 percent from the C$3.8 million the company earned during last year's third quarter. Net sales fell about 9 percent during the third quarter to C$127.5 million compared with C$140.0 million posted in the year-ago period.
Cash flow from operations for the third quarter decreased to C$1.8 million from C$3.2 million last year. The company attributed its declining sales to lower housing starts and slower demand from retailers due to bad weather during the third quarter. Its sales fell 9 percent in Canada and 31 percent in the U.S. Goodfellow's export sales increased 39 percent compared to last year due mainly to strong hardwood lumber sales in China and the Middle East.
Over the first nine months of its current fiscal year, the numbers are worse for Goodfellow. Income during the most recent nine-month period, which ended May 31, is down about 94 percent from last year's first nine-month period, from C$7.8 million to C$500,000. Sales for this period are more reflective of last year, however, having fallen just 7.1 percent from C$357.1 million to C$331.8 million. Cash flow from operations over the first nine months decreased to C$1.9 million from C$8.2 million for the same period last year.
Goodfellow's full earnings report can be viewed here.
