By The Canadian Press

TORONTO - Machine parts maker General Donlee Income Fund (TSX: GDI.UN) said sales fell 36 per cent in the July-September period, citing the impact of the economic slowdown on the manufacturing industry.

Toronto-based General Donlee, which makes precision-machined products for the military and other industries, said sales were $8.6 million in the third quarter, compared to $13.4 million for the same period last year.

The fund reported a profit of $200,000 or four cents per unit in the third quarter, down sharply from $1.4 million or 23.7 cents per unit for the same time last year.

General Donlee said it has cut costs, including reducing labour hours, to meet the slowdown in demand for its products.

Despite the economic slowdown, the fund said it will keep paying its monthly distribution of nine cents per unit. However, it said it will " continually monitor the fund's results and their potential impact on future distributions to unitholders," in future.