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CanWel's Q3 profit grows on higher sales, improved market conditions

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CanWel Building Materials (TSE:CWX), one of Canada's largest national distributors of building materials, rose this morning after reporting an increase in third quarter net profit and revenue on improved market conditions and increased activity level.

Net income in the third quarter was $6.7 million versus $4.7 million in the same period of 2013. Revenue for the three months to September 30 jumped to $227 million from $205 million. 

The company said it continued to focus on its target customer base in the quarter. 

Gross margin increased to 12.1 percent, up from 11.6 percent in the third quarter of 2013, reflecting increased targeted sales and improved market conditions, CanWel said.

"We continue to focus our efforts on optimizing growth and profitability, which is evidenced in our financial performance during the third quarter, on the heels of our robust second quarter," said chairman and chief executive officer, Amar S. Doman, in a release Thursday.

"The continued strength in sales, pricing and profitability across the business is demonstrative of the sound strategic decisions made to date in building a solid company for today and for the future." 

CanWel operates distribution centres coast-to-coast in all major cities and strategic locations across Canada and distributes a wide range of building materials, lumber and renovation products. Shares climbed 3.2 percent to C$6.14 in Toronto on Friday, pushing year-to-date gains to nearly 4.8 percent.

Quick facts: CanWel Building Materials Group

Price: 5.03 CAD

TSX:CWX
Market: TSX
Market Cap: $391.15 m
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