DELSON, Quebec - Goodfellow Inc. (TSX:GDL) reported net income of $3.4 million, up about 6 percent from the $3.2 million a year ago. Consolidated sales for the three months ended May 31, 2016 were $166.7 million also up about 6 percent.
Consolidated sales for the six months ended May 31, 2016 were $275. Sales in Canada during the first six months of fiscal 2016 increased 14 percent compared to the same period a year ago, mainly due to a strong second quarter in Ontario and the Atlantic provinces. Sales in the United States for the first six months ended May 31, 2016 decreased 5% on a Canadian dollar basis compared to the same period last year due to reduced demand for lumber products.
On a non-converted basis, US denominated sales decreased 14% compared to last year. Finally, Export sales decreased 26% during the first six months of fiscal 2016 compared to the same period a year ago mainly due to decreasing demand for value added products in the UK and Asia. On the operating side, Selling, Administrative and General Expenses increased 6.8% compared to the corresponding period last year due to increased variables costs for the added volume and the acquisition of Quality Hardwoods Ltd. As a result, direct, selling, and administrative expenses increased to $45.2 million ($42.4 million last year).
"We are happy with our sales growth during the second quarter as we continue to leverage our recent transactions." said Denis Fraser, President and Chief Executive Officer. "Nevertheless, our profitability remains less than expected mainly due to the implementation cost of our ERP system. Our results are expected to improve in the coming months as we continue to make progress with our efficiency."
The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.15 per share payable August 12, 2016, to all shareholders of record as of July 29, 2016.
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.
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