October 25, 2019
Housing Market To Stabilize
The outlook for housing across Canada is forecast to stabilize over the next two years following two years of declines, says the Canada Mortgage and Housing Corporation (CMHC) in its ‘2020 Housing Market Outlook.’ CMHC also forecasts income and population growth will support a rebound in home sales and prices. “Housing starts are projected to stabilize in 2020 and 2021 at levels in line with long-run averages,” says Bob Dugan, chief economist. “This follows two years of declines from elevated levels in 2017. Resale activity and house prices are expected to fully recover from recent declines." Before the rebound, however, housing starts are expected to register a second consecutive annual decline in 2019. Starts for single-detached and multi-unit housing types will remain below the peaks observed in 2017 (for single-detached starts) and 2018 (for multi-unit starts). Existing home sales are forecast to stay near their 2018 levels until the end of 2019. Home sales will increase in 2020 and 2021 offsetting the declines observed since 2016, reflecting household disposable income growth.
Internorm Adds Kingston Dealership
Internorm by NeuFenster, a European window company certified by the Passive House Standard and NFRC based in Laval, QC, has added a dealer in Kingston, ON. Cornerstone Building Supplies will provide sales and service for Internorm products in and around Kingston enhancing the manufacturer’s reach in Ontario. Mason Laframboise, owner of Cornerstone, founded the dealership because he felt there was a strong need in the region for a one-stop store for high-quality, premium products for contractors. NeuFenster offers a complete line of triple pane windows and doors, featuring Europe’s signature tilt-and-turn functionality.
Rev-A-Shelf Acquires Sidelines
Cabinet accessory manufacturer Rev-A-Shelf, LLC, has acquired Sidelines Inc., a manufacturer of organizational items for the closet, kitchen, and home. Sidelines, based in Arizona, was founded by Charles and Kris Costa as a company with a unique take on organizational items. Rev-A-Shelf is based in Kentucky and, through its subsidiary Tresco Lighting, offers a full line of LED lighting options for residential and commercial cabinetry and store display fixtures. Its primary markets are cabinet hardware distributors, large OEM cabinet manufacturers, home centres, and online resellers. The Sidelines products will be available through Rev-A-Shelf in the Canadian market.
Miller Appointed President Of Shop Vac
Felice A. Miller is president and chief operating officer of Shop Vac Corporation. Most recently, she was executive vice-president. She is the granddaughter of Shop Vac’s founder, Martin Miller.
Lumber Prices Decrease UFPI Sales
Universal Forest Products, Inc., soon to be known as UFP Industries, Inc., had net sales of $1.16 billion for the third quarter of 2019, a decrease of four per cent compared to net sales in the third quarter of 2018. Lower lumber prices contributed significantly to the gross sales reduction as selling prices were down by 11 per cent. Net earnings for the quarter were up 26 per cent year-over-year to $51.9 million. Operating profit was up 24 per cent to $70.5 million and EBITDA was up 23 per cent to $89.7 million. New product sales were up seven per cent. The retail market segment had a one per cent decrease in sales year-over-year; the industrial segment had a six per cent decrease in sales; and the construction segment had a five per cent decrease in sales.
Curtailments Affect Canfor Sales
Canfor Corporation had net sales of $1.1 billion for the third quarter of 2019, a decrease from net sales of $1.3 billion in the third quarter of 2018. The company had a net loss of $124 million compared to a net earnings of $201 million in the year-ago period. The decline reflected lower operating earnings in both the lumber and pulp and paper segments as well as substantial curtailments taken by both businesses during the quarter. Total lumber production was down 15 per cent compared to the second quarter and lumber shipments were down 16 per cent.
October 24, 2019
Wholesales Sales Retreat
Wholesale sales were down 1.2 per cent to $64.3 billion in August, largely offsetting the 1.4 per cent gain in July. Declines were recorded in five of seven subsectors, representing 85 per cent of wholesale sales, says Statistics Canada. In dollar terms, the machinery, equipment, and supplies; the personal and household goods; and the motor vehicle and motor vehicle parts and accessories subsectors contributed the most to the decline. In the machinery segment, the construction, forestry, mining, and industrial machinery, equipment and supplies industry contributed the most to the downward movement. During the same period, imports of logging, construction, mining, and oil and gas field machinery and equipment also fell. Sales declined in every province except Alberta, representing 89 per cent of wholesale sales. Much of the decline was attributable to lower sales in Ontario and Quebec. Following 11 consecutive monthly gains, wholesale inventories declined 0.3 per cent to $93.4 billion in August. Decreases were recorded in five of seven subsectors, which together represented 70 per cent of total wholesale inventories. The inventory-to-sales ratio increased from 1.44 in July to 1.45 in August as declines in sales overshadowed those in inventories.
Matériaux Pont-Masson Opens Seventh Location
Matériaux Pont-Masson has opened its seventh location. The Ste-Clotilde-de-Chateauguay, QC, store will serve as a building materials and hardware retailer and a distribution centre (DC) for the other six stores. With the new DC, the chain can now offer more than 40,000 products in stock. The Ste-Clotilde location has a total surface area of 500,000 square feet including a 6,500-square-foot sales floor and 40,000-square-foot warehouse. Professional customers will have access to a wide range of services including dedicated contractor service with an extended schedule; delivery service with a fleet of over 60 trucks including two 91-foot boom trucks; complete engineering and assessment services; manufacturing of roof truss, beams, and pre-manufactured walls; and special orders.
PayPal Launches Small Business Loan In Canada
PayPal has launched its PayPal Business Loan in Canada, enabling small business owners to access loans between $5,000 and $100,000. The company says alternative loans have steadily grown from four per cent in 2013 to 24 per cent in 2018. At the same time, the alternative lending market in Canada grew by 159 per cent between 2016 and 2017. In Canada, the PayPal Business Loan is currently limited to select PayPal merchants who have been invited to apply. The company expects the program to be more widely available to Canadian PayPal business account holders in 2020. Beyond Canada, PayPal financing products are available in the U.S., UK, Australia, Germany, and in Mexico.
Norbord Announces Indefinite Line Curtailment
Norbord Inc. will indefinitely curtail production on line one of its two-line oriented strand board (OSB) mill in Cordele, GA, effective mid-November until further notice. Line one has been operating on a reduced 10/4 operating schedule since early September. Cordele line two will continue to operate on a full production schedule. The curtailment is due to continued poor market conditions and lower-than-anticipated OSB demand to-date. These conditions no longer support the economic operation of line one at this time. The indefinite curtailment will ensure Norbord continues to only produce what the company can sell, in the most efficient and cost-effective manner.
Built Green Recognizes Construction Waste Reduction Efforts
In recognition of ‘Waste Reduction Week,’ Built Green Canada acknowledges the integral role waste management plays in environmental sustainability, as well as those builders who have long chosen responsible waste reduction methods. Built Green Canada is a national, non-profit organization that offers third-party certified sustainable building programs. These programs take a holistic approach that includes energy efficiency and goes on to address six other critical aspects of sustainable building including materials and methods, water conservation, and waste management. In the residential building industry, waste management primarily refers to the handling of materials on the construction site. The Built Green programs encourage builders to reduce waste, reuse scrap materials, and recycle or donate what’s left over. Built Green also offers renovation programs, both single family and high density, to guide the industry through an environmentally friendly approach. As part of this, credit is offered for reuse of building materials, including building walls, floors, and roof structure - practices that result in high percentages of landfill diversion and offer another way to save through reduced landfill fees and fewer new materials.
Whirlpool Earnings Rise
Whirlpool Corporation had net earnings of $358 million (seven per cent of sales) for the third quarter of 2019, an increase compared to net earnings of $210 million (3.9 per cent of sales) in the third quarter of 2018. Net sales for the quarter were $5.1 billion compared to $5.3 billion in the year-ago period, a decrease of 4.4 per cent. Organic net sales increased 1.6 per cent. EBIT was $722 million, or 14.2 per cent of sales, compared to $275 million, or 5.2 percent of sales, in the same prior-year period. The North American segment sales increased 0.5 per cent year-over-year.
October 23, 2019
Retail Sales Edge Down
Sales in the retail trade sector edged down 0.1 per cent in August to $51.5 billion, says Statistics Canada. Sales were down in six subsectors, representing 51 per cent of retail trade. After removing the effects of price changes, retail sales in volume terms increased 0.2 per cent. Sales at food and beverage stores were down for the first time in three months, declining 0.8 per cent in August. After increasing five per cent in June, sales were down at building material and garden equipment and supplies dealers (0.5 per cent) for the second month in a row. Despite this decline, sales remain above the level observed in May. Retail sales in Ontario dipped 0.8 per cent in August; sales in Manitoba decreased 1.6 per cent; sales in British Columbia were up 0.8 per cent; and sales in New Brunswick were up 3.8 per cent. On an unadjusted basis, retail eCommerce sales were $1.8 billion in August, accounting for 3.2 per cent of total retail trade. On a year-over-year basis, retail eCommerce increased 25 per cent, while total unadjusted retail sales were up 1.5 per cent.
Ontario Entrepreneur Recognized By eBay Canada
Nan Xu, of IHL, Canada has been recognized by eBay Canada as an ‘Entrepreneur of the Year.’ The award recognizes exceptional Canadian small businesses that are harnessing the opportunities of eBay's marketplace to reach new customers across the country and around the world. In 2014, Nan Xu joined Investments Hardware Limited (IHL Canada), a family-owned and -operated business established in 1985 in Woodbridge, ON, that specializes in the sale of power tools and building materials. He oversees its eCommerce department, and recognized an untapped opportunity for IHL Canada to stimulate global export growth using eBay. He redesigned the company's eBay store, which today includes more than 500 listings. To handle the growth in demand on eBay, Nan began using machine learning technology to transform order management, fulfillment, and customer services. Over the last five years, IHL has exponentially grown its exports to over 50 countries across the globe. The company’s eBay business is on track to triple in size this year.
Kent Chooses Fairstone For Financing Offering
Kent Building Supplies has selected Fairstone Financial Inc., a non-bank provider of lending solutions, to provide point-of-sale (POS) financing for retail purchases across the retailer’s 49 stores in Atlantic Canada. As part of its retail POS financing offering, Fairstone is also providing Kent with an automated, mobile, and digital financing platform which can reduce customer financing approval times.
Signify To Acquire Cooper Lighting Solutions
Lighting company Signify, which is based in the Netherlands, has entered into a definitive agreement with Eaton to acquire Cooper Lighting Solutions. Cooper Lighting Solutions, headquartered in the U.S. in Georgia, is a provider of professional lighting, lighting controls, and connected lighting. The business offers a large breadth of products and applications both in the indoor and outdoor segments, sold under brands in North America including Corelite, Halo, McGraw-Edison, and Metalux. The company sells its lighting portfolio through an agent network and has direct relationships with retailers, distributors, and other end-user customers. The acquisition aligns with Signify’s strategy to strengthen its presence in the North American market. The companies will maintain separate front offices, sales forces, agent networks, product and brand portfolios, and marketing and product development teams. The acquisition is expected to take place in the first quarter of 2020.
Volta Launches AI Robotic Mower
Italy-based Volta, a company that specializes in the integration of artificial intelligence (AI) into traditional home appliances, has launched Mora, a robotic mower that operates without the need for a boundary system. The robotic mower requires no installation, digging, wiring, or beacons to guide its progress across a lawn. Instead, it deploys an AI-based autopilot to visually navigate the intricacies of the property and stay self-confined to the lawn. The unit’s autopilot recognizes and avoids obstacles – including edges, pets, garden tools, toys, and human body parts. It can even detect and avoid an object as thin as a towel laid on the grass. The company is actively pursuing the North American market.
Gammel Joins Atlas Engineered Products
Bill Gammel is vice-president of sales with Atlas Engineered Products (AEP). He has more than 30 year of experience as a business development specialist and entrepreneur in Canadian markets.
West Fraser Has Net Loss
West Fraser Timber Co. Ltd. had net sales of $1,190 million in the third quarter of 2019, down from net sales of $1,646 million in the third quarter of 2018. The company had a net loss of $45 million which compares to net earnings of $238 million in the year-ago period. Lumber production was down three per cent over the second quarter while lumber shipments exceeded production by approximately 48MMfbm (million board feet).
October 22, 2019
Home Depot To Provide CRA With Customer Information
The Home Depot Canada has sent letters to customers who have commercial credit card accounts to notify them it is complying with the Canada Revenue Agency’s court order to provide information on commercial accounts such as business names, addresses, and purchase details from 2013 to 2016. As part of a crack down on the underground economy, the CRA has been requesting this information from a number of large home improvement retailers over the past three years. The Home Depot Canada fought the court order, but will provide the information to the CRA based on a federal court decision. The underground economy accounted for $51.6 billion in 2016 (Statistics Canada) or 2.5 per cent of the gross domestic product. Residential construction accounts for 28.3 per cent of that number; retail trade accounts for 13.5 per cent.
August Building Construction Investment Increases
Total investment in building construction increased 1.4 per cent in August to $15.5 billion, with gains in both the residential and non-residential sectors, says Statistics Canada. On a constant dollar basis, investment in building construction increased 1.2 per cent to $13 billion. Investment in residential building construction was up 1.8 per cent in August to $10.6 billion. The multi-unit component edged up 0.4 per cent to $5.3 billion, led by Ontario ($129.2 million). Investment in single-unit construction increased 3.2 per cent to $5.4 billion, slightly exceeding multi-unit residential investment. This was partly due to gains in Ontario ($94 million) and Alberta ($47.5 million). Non-residential investment was up 0.5 per cent to $4.9 billion. Both the commercial (0.8 per cent to $2.8 billion) and institutional (0.2 per cent to $1.1 billion) components edged up. The industrial component edged down 0.4 per cent to $905.4 million in August.
U.S. Remodeling Market Expected To Stall In 2020
Annual gains in U.S. homeowner spending for improvements and repairs are set to decline by the second half of next year, says the Leading Indicator of Remodeling Activity (LIRA) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects that annual home improvement and maintenance expenditures will post a modest decline of 0.3 per cent through the third quarter of 2020. “Continued weakness in existing home sales and new construction will lead to sluggish remodeling activity next year,” says Chris Herbert, managing director of the Joint Center for Housing Studies. “Slowdowns in other key indicators of improvement spending - project permitting, sales of building materials, and home prices - also suggest the remodeling market may be reaching a turning point.” The centre says low mortgage interest rates, however, may help counter some of these headwinds, which could buoy home improvement spending over the coming year.
Retailers Must Become Privacy Conscious
With consumers at a greater risk for a data breach than ever before, it is more important than ever for retailers to become data-wise and privacy conscious, says a report by Deloitte. The ‘U.S. Consumer Data Privacy Study’ says nearly three in four consumers (71 per cent) are willing to share personal data if they receive better pricing, special discounts, or exclusive offers. And, consumers who are satisfied with privacy policies are more likely to be open or neutral about sharing personal data (73 per cent), compared to those who are unsatisfied or unaware (57 per cent). Deloitte says consumer privacy is at an inflection point in retail, with significant business, financial, and regulatory reasons for retailers to act now. Currently, nearly half of U.S. consumers feel they have little to no control of their personal data and the vast majority (86 per cent) believe they should be able to opt-out of the sale of their data. However, consumers are willing to share their personal information in return for benefits to them, but retailers should walk a fine line not to betray consumers' trust.
Samsung Partners With Mobeewave
Samsung Electronics has partnered with Mobeewave, a provider of contactless mobile card payment acceptance, to deploy NFC-enabled contactless payment acceptance on mobile devices worldwide. Over the past several months, the two companies have worked together on a pilot in Canada, testing Samsung POS, a mobile-based point-of-sale (POS) solution. Samsung POS enables merchants to accept debit and credit payments by tapping contactless cards, Samsung Pay, Apple Pay, and Google Pay wallets onto Samsung NFC-enabled devices – without dongles, cables, or other additional hardware. The pilot generated over 10,000 downloads of Samsung POS, driven by transactions from micro-merchants and small businesses in a variety of industries. Merchants can download the Samsung POS app and go through a sign-up process within the app to register. The platform has been deployed first in Canada and the company plans to expand globally starting in 2020.
Hultafors To Acquire CLC
Sweden-based Hultafors Group will acquire California-based Custom LeatherCraft Manufacturing LLC (CLC). CLC designs, develops, and markets work gear, personal protective equipment, and outdoor gear. Its products include tool belts, softside tool carriers, kneepads, gloves, and other outdoor gear. The company’s products are marketed under the CLC brand in the U.S. and the Kuny’s Leather brand in Canada. The acquisition will allow Hultafors to strengthen its presence in North America, strengthen its product portfolio, and develop relationships with key customers within the distribution channel.
Armstrong Joins Ace
Kirk Armstrong is vice-president of distribution and supply chain innovation with Ace Hardware Corporation. Previously, he was senior vice-president, operations and supply chain, with Owens & Minor, a healthcare distributor.
Sales Up At WD-40
WD-40 Company had net sales of $106.7 million for the fourth quarter of 2019, an increase of four per cent compared to net sales of $102.6 million in the fourth quarter of 2018. Sales for the Americas segment was $49.3 million compared to $49.7 million last year. Sales in the maintenance products segment increased four per cent to $97.3 million and sales in the homecare and cleaning products segment were flat at $9.5 million. Overall net income for the quarter was $8.6 million, a decrease of 60 per cent compared to $21.6 million last year, due to a tax adjustment. Gross margin was 54.6 per cent compared to 55.2 per cent.
October 21, 2019
Home Depot Canada, Walmart Canada Must Accept Settlement
Members of a class action have no right to appeal a court-approved settlement of the lawsuit, ruled the Court of Appeal for Ontario. The decision means the Home Depot Canada and Walmart Canada must accept the multi-million dollar agreement reached between plaintiffs, credit card companies Visa and Mastercard, and the banks that issue the cards. The case alleged that Visa, Mastercard, and 10 banks conspired since 2001 to fix, maintain, increase, or control certain fees for merchants that accept payment by credit card. Class actions were launched in cities across Canada which settled for more than $50 million. In 2018, the Superior Court of Ontario approved a settlement under which, among other things, Visa and Mastercard each agreed to pay $9.5 million to the plaintiff merchants. Neither company admitted liability. Home Depot Canada and Walmart Canada had objected calling the settlements unfair and not in the best interests of class members. In an effort to appeal, the companies argued that the agreements released the credit card companies from consequences for any future anti-competitive conduct. In rejecting the retailers' challenge, the court said that neither company was a representative plaintiff which makes litigation decisions on behalf of the class and bears the risks if the action fails.
Lowe’s Canada Celebrates Dealers
Lowe’s Canada took advantage of the ‘2020 RONA and Ace Canada Buying Show’ to celebrate several RONA and Ace dealers. The following dealers and suppliers were honoured during the evening gala: RONA Builder of Success program: Community category - RONA Ferronnerie Houle (Saint-Jean-sur-Richelieu, QC); Up and Comer category - RONA Sonnenburg Hardware (Massey, ON); Lifetime Achievement category - RONA J. Anctil (Saint-Denis-de-Brompton, QC). Celebrated in the Ace Canada Builder of Success program were: Community category - Ace Victory Building Supplies (Mackenzie, BC); Up and Comer category - Ace Leader (Leader, SK); Lifetime Achievement category - Ace Building Centre Vanderhoof (Vanderhoof, BC). Years as a RONA dealer: 25 years - RONA Centre de rénovation Senneterre (Senneterre, QC), RONA Centre de rénovation St-Patrick (Montreal, QC), RONA Quincaillerie Hemmingford inc. (Hemmingford, QC), RONA Quincaillerie de Lacolle inc. (Lacolle, QC), RONA Quincaillerie Poulin Lussier et filles (Saint-Odilon, QC), RONA Quincaillerie S.C. Roy (Saint-Ephrem-de-Beauce, QC); 30 years - RONA Quincaillerie R-Cube inc. (Wakefield, QC); RONA Quincaillerie Charleroi (Montreal, Quebec); 35 years - RONA Quincaillerie Gauvin (L’ancienne-Lorette, QC); RONA Gestion Berlaber inc. (La Malbaie, QC); 40 years - RONA Quincaillerie Delorimier inc. (Montreal, QC); 45 years - RONA Quincaillerie Notre-Dame St-Henri (Montreal, QC), RONA Quincaillerie Turbo inc. (Cap-aux-Meules, QC), RONA Bernard Breton inc. (Saint-Narcisse-de-Beaurivage, QC), RONA Matériaux Audet (Quebec, QC), and RONA Julien & Frères (Baie-Comeau, QC); 50 years - RONA Quincaillerie Saint-Camille-de-Lellis (Saint-Camille-de-Lellis, QC); 55 years - RONA Quincaillerie Crémazie inc. (Quebec, QC); 60 years - RONA J. St-Cyr & Frères Ltée (Notre-Dame-du-Mont-Camel, QC); 65 years - RONA Iberville (Ferronnerie Houle) (Iberville, QC), RONA Quincaillerie Jean Hebert inc. (Montreal, QC), RONA Quincaillerie C. Bélanger Ltée (Montreal, QC), RONA Quincaillerie du Plateau (Montreal, QC); 80 years - RONA Marché Gosselin Tradition (Frelighsburg, QC), RONA Quincaillerie J.R. Grégoire (Montreal, QC); Ace eCommerce Awards: eCommerce Achievement Award - Silver: Kaslo Ace Building Centre (Kaslo, BC), Quincaillerie Ace Arthur Rivest (Sainte-Julienne, QC), Victory Ace Building Centre (Mackenzie, BC); eCommerce Achievement Award - Gold: Ace Peel Hardware & Supply (Caledon, ON), Ed’s Ace Building Centre (Fort Nelson, BC); eCommerce Achievement Award - Diamond: AMS Ace Building Centre (Queen Charlotte, BC); Best eCommerce Performance Award - Eastern Canada: Quincaillerie Ace Arthur Rivest (Sainte-Julienne, QC); Central Canada: Ace Peel Hardware & Supply (Caledon, ON); Western Canada: AMS Building Centre (Queen Charlotte, British Columbia); Best National Performance – AMS Building Centre (Queen Charlotte, BC); eCommerce Retailer of the Year Award - Eastern Canada – Quincaillerie Ace Matériaux P.A. (Les Cèdres, QC); Central Canada – Grafton Ace Country & Garden (Grafton, ON); Western Canada – Kaslo Ace Building Centre (Kaslo, BC); Supplier of the Year ??? Soprema
U.S. September Construction Starts Decrease
New construction starts moved five per cent lower in September to a seasonally adjusted annual rate of $774.1 billion, says Dodge Data & Analytics. This marks the second consecutive monthly decline in construction starts. By major sector, non-building construction fell 13 per cent in September, while residential construction dropped six per cent. On the plus side, non-residential construction starts rose one per cent during the month aided by the start of a large manufacturing project. The September statistics pushed the index lower to 164 compared to 173 in August, marking the lowest reading since May. Despite the month’s decline, the index remains close to its 2019 average of 167. Year-to-date through September, non-residential building starts totalled $215 billion, a four per cent decline from the first nine months of 2018. Commercial starts were six per cent higher pushed forward by the office, warehouse, and parking categories. Institutional construction starts were down three per cent through nine months, with all major categories posting setbacks. Manufacturing starts were a sharp 39 per cent lower year-to-date. Residential construction starts were six per cent lower than in the same period of 2018; single family starts were down four per cent, while multi-family declined 11 per cent year-to-date.
Homeowners Want To Upgrade Homes
Most U.S. homeowners expect to make improvements to their property in the next year to build their home’s value, says a survey by Chase Home Lending. The survey says 80 per cent of homeowners anticipate taking on a home improvement project. More than 70 per cent plan to do at least some of the work themselves, though some may tap into professionals when necessary. Motivations for upgrading homes include adding value, creating a comfortable space for family and hosting, and feeding a hobby of DIY/home improvement. Fifty-eight per cent of homeowners planning a renovation foresee spending up to $10,000 on a project; 21 per cent foresee projects of $10,000 to $25,000; and another 21 per cent aimed high, planning to spend at least $25,000. While some plan to use cash and savings for their home projects, many others are looking at a mix of savings, credit cards, and leveraging their property value through a home equity line of credit or cash-out refinance.
J.D. Irving To Close Baker Brook Sawmill
J.D. Irving will close its Baker Brook, NB, sawmill as of November 1. The company says a decline in cedar supply and weak markets for byproducts such as wood chips, shavings, and sawdust are behind the decision. The sawmill has been operated by J.D. Irving since 2006 and produces cedar boards.
Mueller Joins Big Lots
Andrej Mueller is executive vice-president of business strategy at Big Lots, Inc. Previously, he was with Boston Consulting Group, most recently as managing director and partner in its Germany office.
PPG Has Consistent Third Quarter
PPG had net sales of approximately $3.8 billion for the third quarter of 2019, consistent with net sales for the third quarter of 2018 and up two per cent in constant currencies year-over-year. Net income from continuing operations was $366 million compared to $368 million in the year-ago period. The performance coatings segment had net sales of $2.3 billion for the quarter, up one per cent over last year, with constant currency sales up three per cent. Year-over-year organic sales in architectural coatings increased slightly, with modest increases in the U.S. and Canada although same store sales were down in these regions. The industrial coatings segment third quarter net sales were $1.5 billion, down one per cent year-over-year.