(RTTNews) - Thursday, specialty hardware and related products maker Richelieu Hardware Ltd. (RCH.TO: News ), reported an 8.0% decline in profit for the third quarter, as revenues dropped over 2% from last year, reflecting a slowdown on the residential and commercial renovation market in the United States, as well as Canada amid the challenging economic conditions.

Richard Lord, President and Chief Executive Officer, Richelieu said, "Despite the more challenging environment, we continued to increase our market share during the period. Several new customers have been recruited every month since the beginning of the year, which bodes well for our future growth once the economy further recovers."

The Quebec, Canada-based company's net earnings for the third quarter declined to C$8.9 million from C$9.6 million in the prior-year quarter. On a per share basis, earnings decreased 4.8% to C$0.40 per share from C$0.42 per share in the year-ago quarter.

In the sequentially preceding second quarter, Richelieu's net income declined to C$7.31 million or C$0.33 per share from C$9.1 million or C$0.40 per share in the prior-year quarter.

For the latest third quarter, sales decreased to C$109.4 million from C$111.8 million in the year-earlier quarter, reflecting a 2.5% internal decrease and a 0.4% growth from the acquisition of Acroma Sales Ltd.

Sales for the second quarter were C$110.1 million, down 4.1% from C$114.85 million in the same period last year.
On a geographical basis, sales in Canada for the third quarter rose 1.2% year-over-year to C$93.0 million, from a 0.7% internal growth and a 0.5% growth from acquisition of Acroma. Eastern Canadian market contributed around 44% of consolidated sales. In U.S., sales for the quarter, expressed in Canadian dollars, totaled C$16.4 million, down 17.5% to C$19.9 million in the year-ago quarter.

Sales to manufacturers for the third quarter dropped 4.9% year-over-year to $87.5 million, while sales to hardware retailers and renovation superstores grew 11.0% to C$21.9 million from the previous-year quarter.

Earnings before income taxes, interest, amortization and non-controlling interest, or EBITDA, for the quarter was C$14.9 million, down 6.1% from the corresponding quarter of last year. EBITDA profit margin contracted to 13.6% from 14.1% in the same quarter last year.

Richelieu indicated that the retailers and renovation superstores market registered significant growth across its Canadian network, accounting for 20% of the quarterly sales.

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