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Strongco Posts 100-Percent Net Income Improvement

Canadian multi-line distributor Strongco Corp. posted first-quarter total revenues of CDN $96.8 million (about U.S. $96.5 million), an 11-percent increase compared to the first quarter of 2011. Net income improved 100 percent from $598,000 to $1.2 million.

Equipment rental decreased 5.4 percent, from CDN $5.5 million in the first quarter of 2011 to $5.2 million in the recently concluded quarter.

“The improvement in construction markets that gathered momentum during 2011 continued into the first quarter of 2012,” said Robert Dryburgh, president and CEO of Strongco. “Strongco benefited from higher end-use markets, better sales execution and one additional month of contributions from Chadwick-BaRoss, which we acquired in February of last year. As a result, we posted gains in all major metrics — revenues, margins, EBITDA, net earnings and EPS. As we move through 2012, we see demand continuing to rise in all of our markets and that’s reflected in the strongest order book we’ve had in several years.”

The Canadian economy in general and construction markets across Canada are expected to continue to improve throughout 2012, the company said, which should result in strong demand for heavy equipment.

Strongco’s primarily lines are Volvo CE, Case, and Manitowoc Crane Group.

Strongco’s rental revenue was strong in Eastern Canada, historically not a major rental market for heavy equipment. Rental activity was also stronger at its New England dealership Chadwick-BaRoss. Strongco’s crane business experienced an increase in rental activity since the recession as construction markets and demand for cranes improved. Rental-purchase options contributed to increased rental activity in Ontario.

Based in Mississauga, Ontario, Strongco Corp. is No. 61 on the RER 100.

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