Delson Quebec, December 21, 2006--Lumber and hardwood flooring distributor Goodfellow Inc. today reported net income for the first three months ended November 30, 2006 of $5.5 million or $1.28 per share compared to $3.1 million or $0.74 per share for the same period a year ago.
This result includes the final net settlement after tax of $3.5 million CAD related to the Softwood Lumber Agreement which entered into force on October 12, 2006. Net income without this non recurring item was $2.0 million or $0.46 per share.
Consolidated sales for the first three months ended November 30, 2006 were $119.2 million compared to $120.5 million for the same period a year ago.
Cash flows generated from operations for the first three months ended November 30, 2006 were $5.8 million or $1.36 per share ($2.3 million or $0.54 per share excluding CVD repayment) compared to $3.8 million or $0.89 per share last year.
Gross profits slipped 4.6% during the first three months ended November 30, 2006 compared to last year's results. There is generally a surplus of supply of product currently on the market but conditions remained relatively strong for our value-added product mix.
"Business conditions since September have been more difficult in almost all markets except Alberta." said Richard Goodfellow, president and CEO of Goodfellow Inc. "Our core wood products businesses remain strong while the wood flooring business continues to adjust to the new market conditions and the revalued Canadian dollar." he added.
Goodfellow Inc. is eastern Canada's largest independent re-manufacturer and distributor of lumber products and Canada's largest distributor of hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.
