19.11.2012

Strongco up 12.5%

Canadian crane and equipment distributor Strongco has reported nine month revenues up 12.5 percent to $348.3 million, while pre-tax profits for the period rose 17 percent to $9.7 million.

In the third quarter revenues improved 10 percent, while pre-tax profits slipped back a little from $3.8 million last year to $3.6 million this year.

Chief executive Robert Dryburgh said: “In the third quarter, Strongco achieved strong results, with continued improvement in all major revenue streams and increased operating earnings. Overall, we are satisfied with the operating performance although our inventories are higher than we would like. With on-going demand in the market and our current level of Rental Purchase Options combined with other actions we are taking, inventories will be reduced.”

“Our sales backlogs grew significantly during the first quarter of 2012 and remained robust through the second and third quarters, which is a positive indication of the continued strong demand for heavy equipment. At the same time, the level of RPO activity has increased throughout the year and by the end of the third quarter, there was $67.3 million of equipment inventory on RPO contracts. Looking ahead, the strong backlog and growing level of RPOs should contribute to strong sales growth in 2013.”

Strongco sells Manitowoc, Grove, National crane, Jekko Sennebogen and Fassi cranes across Canada.