25.03.2013

Strongco lifts revenues

Canadian crane and equipment company Strongco has reported lower profits on a 10 percent rise in revenues for 2012.

Revenues of the year were $464.2 million, up 10 percent on 2011, while pre-tax profits slipped almost six percent to $10.5 million. Revenue growth in the fourth quarter slowed, rising just two percent to $115.9 million.

Chief executive Robert Dryburgh said: “In 2012, Strongco increased revenues, gross margin and EBITDA. At the same time, we expanded our market presence with the opening of four new branches in regional markets across Canada. We are already seeing the benefit of the investment in these new branches as our clients have responded positively to our greater commitment to better service."

“However, we have accumulated a higher level of inventory to mitigate our concerns arising from the poor delivery of equipment we experienced in 2011. As a result, related equipment notes were higher than planned as was the corresponding interest that offset the gains we made in operating profits, reducing net income year over year.”