UPDATE 3-Rona Inc's profit drops, says 'progress interrupted'
* Adj earnings C$0.27/shr vs C$0.36/shr a year earlier
* Revenue down 0.8 percent at C$1.34 billion
* Rona says difficult market weighs on results
* Shares fall 5 pct (Adds analyst's comments, background on turnaround plan, byline)
By Allison Martell
Nov 7 (Reuters) - Canadian home-improvement retailer and distributor Rona Inc reported a drop in quarterly profit on Wednesday after cutting prices to limit sales declines in a tough market.
Rona launched a turnaround plan earlier this year and refused a takeover by U.S.-based competitor Lowe's Cos Inc . The company said its turnaround plan would proceed.
"Rona saw its progress interrupted in a quarter marked by a decline in the Canadian hardware-renovation industry as a whole," the Boucherville, Quebec-based company said in a release. "The drop in sales, coupled with more intense competition, put pressure on gross margins."
Sales at established stores fell 1 percent, pulled down by retail operations, where same-store sales were 1.8 percent lower. Distribution sales rose on a same-store basis. Continued...