Rona Inc. (TSE:RON), a Canadian home improvement retailer and distributor, rose in midday trades after posting a stronger-than-expected quarterly profit.
Shares were up 2.6 percent at C$12.70 at 1:57 p.m. in Toronto, expanding gains over the past year to 13 percent.
Adjusted earnings from continuing operations rose to C$42 million, or C$0.35 per share, in the three-month period ended June 29, from C$33.6 million, or C$0.28 per share, in the year-earlier quarter, the Boucheville, Quebec-based company said in a statement today.
Analysts, on average, had expected earnings per share of C$0.33.
Overall, net income of C$42 million reversed last year's loss of C$38.7 million.
Revenue fell to C$1.19 billion from C$1.25 billion.
Rona said the results demonstrate the success of its turnaround plan and its need to stay focused on efficiency.
Lower costs helped offset a drop in sales due to tough competition in the home renovation market, it said.
Annual costs were reduced by C$110 million in 2013 by cutting jobs, closing stores and selling assets, the company said.
In July, Rona signed a long-term deal for master licensing of the Ace Hardwarebrand with Ace Hardware International. The deal is expected to help Rona improve its offering to small dealers across the country while leveraging its existing distribution infrastructure.
Rona declared a semi-annual dividend of C$0.07 per share on its common shares.
The company also announced a quarterly dividend of C$0.3281 per share on cumulative 5-year rate reset Class A preferred shares, series 6.