Canadian distributor Strongco posted CDN $93.6 million in revenue in the fourth quarter of 2017 compared to $81.2 million in the same period of 2016, a 15.3-percent improvement. For the full year revenues were almost even at $356 million in 2017 compared to $361.3 million, a 1.5-percent decline.
Equipment rental revenue for the full year was $16.8 million compared to $15.4 million in 2016, a 9-percent increase. In western Canada, ranging from Manitoba to British Columbia, equipment rental leapt 60 percent, from $3 million in 2016 to $4.8 in 2017. In Ontario, rental revenue jumped from $6 million in 2016 to $6.7 million in 2017, an 11.7 percent increase. However, in eastern Canada, including Quebec and the Atlantic provinces, revenue dropped from $6.4 million in 2016 to $5.3 million in 2017, a 17.2-percent slide.
Rental revenues were higher in Ontario (central) and western Canada as demand for equipment increased and more customers chose to rent as markets continued to recover.
“2017 was a successful transition year for Strongco, following the restructuring initiatives that commenced in 2016,” said Strongco executive chairman Robert Beutel. “We’re pleased with the progress we are seeing to simplify and stabilize the business, as the performance improvements in 2017 were driven by core brand sales and increases in rentals and product support. While we are seeing improved activity in key markets, the progress is gradual and challenges are real. The successful execution of our strategy has Strongco well positioned to build market share today and in the years ahead.”
Strongco sold a large crane order to the Champlain Bridge project in Quebec in 2016. Excluding that project, year-over-year revenues increased by $22.5 million because of higher sales of construction equipment across the country, higher sales of used equipment, especially in western Canada, and increased rental revenues, particularly in western and central Canada. Strong also had higher product support sales in western and eastern Canada.
Strongco is one of the largest multiline mobile equipment distributors in Canada, selling and renting new and used equipment and providing parts and service to customers in infrastructure, construction, mining, oil and gas exploration, forestry and industrial markets. Primary lines include Volvo CE, Case Corp., Manitowoc Crane Group and others.
Strongco is headquartered in Mississauga, Ontario.
