The Financial Post reports in its Wednesday edition home improvement retailer and distributor Rona posted a stronger-than-expected quarterly profit on Tuesday as lower costs helped offset a drop in sales. A Reuters dispatch to the Post quotes Rona as saying the results demonstrate the success of its turnaround plan and its need to stay focused on efficiency. The Quebec-based company reduced annual costs by $110-million in 2013 by cutting jobs, closing stores and selling assets. Still, tough competition and a slowdown in some markets squeezed sales in the 13-week period ended July 29. Sales at established stores declined 0.7 per cent from a year earlier and overall revenue fell 4 per cent. "The home renovation spending market remains highly competitive, which coupled with a cautious consumer spending market, is likely to challenge Rona's top line over the coming quarters," Canaccord Genuity's Derek Dley said in a note. Rona's closely watched adjusted earnings from continuing operations rose to $42-million, or 35 cents a share, in the second quarter, from $33.6-million, or 28 cents a share, in the year-before quarter. Revenue fell to $1.19-billion from $1.25-billion. A harsh winter hurt first-quarter results.