26.02.2011

Ritchie auction sales down 6%

Ritchie Bros the used equipment auctioneer has reported that gross auction sales fell six percent in 2010.

The gross sales value of all of its 2010 auctions totalled $3.28 billion six percent lower than in 2009. The company’s net revenues from the sales were $357 million, down just under six percent. Pre-tax profits fell 31 percent to $90.8 million.

The company saw online sales climb five percent in 2010 to $872 million, while internet bidders represented 43 percent of the total bidder registrations in 2010.

Chief executive Peter Blake said: “Our results in 2010 reflected the challenging environment in which we operated, like many companies in our industry, and the difficulties we faced securing equipment consignments to sell at our auctions. The widely hoped-for recovery in the used equipment market did not materialize, and there was not a meaningful improvement in fundamentals or optimism during the year.”

“As we begin 2011 we see many signs of the used equipment market returning to a more balanced state. Equipment owners are more optimistic, OEM production is increasing to satisfy growing demand, and pricing has improved on most equipment categories. There is a lot of cash waiting to be deployed in the economy, and some of that capital is likely to be invested in equipment. Although competition is intense, these are all positive signs for our ability to grow our business in 2011.”

“The success of our early auctions in 2011 and the flow of consignments for upcoming auctions provide clues to a return to brighter days ahead as we set about to offer compelling business solutions to enable the world’s builders too easily and confidently exchange equipment.”