Goodfellow Sees Second Quarter Profit Shrink

Delson, Quebec, Canada, March 23, 2008--Canadian firm Goodfellow Inc. said its net income fell to $38,000 in the second quarter ended Feb. 29 compared to $500,000 in the second quarter a year ago.

Net sales for the quarter also decreased to $99.2 million from $106.6 million a year ago.

The company said that extreme weather conditions in Eastern Canada, economic problems in the U.S. and and currency issues affected results. The foreign currency conversion effect on our US denominated sales resulted in a reduction of some $2.9 million in sales compared to last year.

General expenses, selling and administrative costs for the second quarter increased from $18.5 million last year to $19.4 million. The increase reflected higher snow removal operations, higher energy costs and increased labor costs due to tadded production capacity in Trois-Rivieres, Tremblant, and Calgary.

"The harsh winter in the east has played havoc with logistics and has been a costly one for snow removal, repairs and maintenance, and tough on morale overall." said CEO Richard Goodfellow.

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.