Leading Canadian equipment distributor Strongco Corp. posted a 10-percent total revenue increase in the third quarter ended Sept. 30, with revenues of CDN $110.2 million, compared with $108.4 million for the same period of 2012. Equipment rental revenue was $10.5 million, compared with $9.2 million for last year’s third quarter, a 14.1-percent climb.
For the first nine months of 2012, rental revenue totaled $21.9 million, compared to $20.7 million a year ago, a 5.8-percent increase. Total revenue for the first nine months of 2012 zoomed from $310 million to $348.3 million, a 12.4-percent leap.
“In the third quarter, Strongco achieved strong results, with continued improvement in all major revenue streams and increased operating earnings,” said Robert Dryburgh, president and CEO of Strongco. “Overall, we are satisfied with the operating performance although our inventories are higher than we would like. With ongoing demand in the market and our current level of RPOs combined with other actions we are taking, inventories will be reduced. Looking ahead, the strong backlog and growing level of RPOs should contribute to strong sales growth in 2013.”
Construction markets across Canada are expected to remain active in 2013, which should result in strong demand for heavy equipment, Strongco officials said. The outlook for Alberta is positive with activity in the oil sands expected to remain robust, which should lead to continued demand for articulated trucks and cranes. Continued hydro-electric projects in Quebec and ongoing infrastructure activity to rebuild roads and bridges across the province are expected to keep demand high there. The company is also active in the northeast United States, where Strongco expects modest growth in 2013.
Strongo Corp., based in Mississauga, Ontario, Canada, is No. 61 on the RER 100.