Increased costs for materials, energy and labor caused a decline in net profit of 9.9 percent to $84,000,000 for Yue Yuen Industrial Limited in its 3rd quarter, ended June 30. Gross margins dropped 230 basis points to 21.7 percent. Offsetting these costs was an 11.9 percent rise in total sales to $859 million, driven by strong growth in Europe, Canada and Asia. Retail sales in China nearly doubled.