THE CANADIAN PRESS

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MONTREAL - Richelieu Hardware Ltd. (TSX:RCH) says a small increase in sales from Eastern Canada and growth in the Canadian retail market during the summer quarter weren't enough to offset a decline revenue from the United States.

The hardware manufacturer and distributor, which supplies building centres and manufacturers, said its net income of $8.9 million or $0.40 per share in it's fiscal third quarter ended Aug. 31.

The profit was down from $9.6 million or 42 cents per share a year earlier.

Overall revenue fell to $109.4 million from $111.8 million. Sales from Canada amounted to $93.0 million, up $1.1 million from the same period of 2008, but that was offset by a $3.5-million decline in U.S. sales, whiche fll to $16.4 million.

The higher Canadian sales was due partially to internal growth and partly because of the acquisition of Acroma Sales Ltd. in July 2008.

Richard Lord, Richelieu's president and chief executive officer, said in a statment that he was pleased with the results due to difficulties among manufacturers market, especially in the United States as well as Central and Western Canada.

"Conversely, we recorded a solid performance in Eastern Canada, in our two major markets - manufacturers and retailers. Note that the retailers and renovation superstores market, which accounted for 20 per cent of the quarter's sales, registered significant growth across our Canadian network."

Lord said the company maintained satisfactory profit margins by controllly expenses

"These operating results further strengthened our already excellent financial position and our ability to take advantage of growth opportunities in North America," Lord said.