11.08.2014

Strongco decline continues

Canadian crane and equipment dealer Strongco has reported another challenging quarter with lower revenues and profits.

Looking first at the half year, revenues were $actually slightly higher than in 2013 at $240.3 million, while last year’s pre-tax profit of $987,000 was converted to a loss of $1.7 million.

Moving on to the second quarter revenues fell three percent to $135.9 million, mainly due to a 25 percent drop in rentals, while new equipment sales slipped four percent, however product support revenues improved by around five percent. Pre-tax profits were almost cut in half from $4 million last year to $2.3 million this year.

Chief executive Bob Dryburgh said: “The challenging weather conditions that extended well into May curtailed construction activity across the country and limited oil field access delaying purchasing decisions by customers. The difficult winter exacerbated the already weakened market situation in eastern Canada causing a further market decline and affecting sales of construction equipment and cranes. Crane sales were also down in Alberta, compared to a much stronger market in 2013. However, sales of other heavy equipment in western Canada and the eastern United States largely offset these short-term pauses in the market.”

“The onset of warmer and dryer temperatures in June has resulted in improved quoting activity and order backlogs remain at robust levels, creating a more optimistic outlook for the balance of the construction season. Management anticipates that heavy equipment markets across the country will generally follow construction activity, with the possibility of some catch up in the second half in some regions.”

Strongco is a dealer for Manitowoc, Grove, National Crane, Fassi and Jekko cranes, Skyjack aerial work platforms and telehandlers and Sennebogen material handling machines.