DELSON, QC - Goodfellow Inc. (TSE:GDL), a re-manufacturer and distributor of lumber and hardwood flooring, reported net earnings of C$2.1 million on sales of $134.0 million for its third quarter ended May 31.
Net earnings and consolidated sales were down 16 percent and 3 percent respectively from Q3 of last year.
While Goodfellow's Q3 sales in the U.S. and export markets grew, the company said its Canadian sales declined due to the late spring, provincial election in Quebec and lower housing start totals in Eastern Canada.
"The most difficult winter at most of our customers carried through into Q3 and results were far from expectations," said Richard Goodfellow, CEO. Ontario and Western Canada sales posted a stronger performance again to mitigate this decline.
Uncertainty about how the separatist Parti Québécois would fare in the election in April dampened housing, according to some analysts. Montreal, the Quebec Province's largest city, saw an uptick in sales of luxury homes when it became clear that the Parti Québécois had lost Quebec's provincial election in April.
Goodfellow CEO Stepping Down
Goodfellow's Q3 earnings report came on the heels of an announcement that M. Richard Goodfellow, president and CEO, will retire on Nov. 30. The company's board of directors have retained the services of J. Robert Swindler & Associates, a Montreal-based management consulting firm, to help evaluate both internal and external candidates for the company's top post.
Goodfellow, who became president and CEO in 1989, is credited with helping expand the company's business across North America and into foreign markets. Under his direction, Goodfellow inc.'s annual sales increased from $187 million in 1989 to almost $500 million.
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