31.03.2011

Strongco up 36% in fourth quarter

Canadian equipment distributor Strongco saw revenues in the fourth quarter jump 36 percent, leaving it up slightly for the year.

Full year revenues were $294.7 million up just one percent on 2009, this was made up of rental up 55 percent to $22.2 million, sales flat at $183.7 million and parts & service down five percent to $88.8 million.

Lower margins on sales and lower parts sales caused a full year pre-tax loss of $1.46 million, compared to a profit in 2009 of $1.5 million.
Revenues in the fourth quarter were strong and followed the positive turned of the third quarter rising 36 percent to $91.8 million, while net income was $1.5 million, compared to a loss in 2009 of $2.1 million.

Chief executive Robert Dryburgh said: "Revenues in the fourth quarter, once again, improved over the preceding quarter and were substantially ahead of the fourth quarter last year. Importantly, we improved our national market share over both the third quarter this year and the fourth quarter of 2009. Equipment sales were up 47 percent compared to the fourth quarter of 2009, benefitting from our commitment to rental product and the resultant large volume of rental purchase option conversions in the quarter. Our order intake level is being sustained after steadily increasing through the first half of the year and we enter 2011 with this encouraging indication of strong demand."

"The substantial increase in revenues resulted in stronger margin dollars this year. These increases, combined with operational improvements and cost reductions that we put in place during 2009, generated EBITDA of $9.3 million in the fourth quarter, up from $2.9 million last year. As a result, we ended the quarter with net earnings of $1.5 million, compared to a loss of $2.1 million in the same period in 2009."

Strongco sells Manitowoc, Grove, National Crane and Fassi cranes along with Case telehandlers.