Ritchie Bros. Net Earnings Down for First Nine Months of 2011
Ritchie Bros. Auctioneers posted net earnings for the nine months ended Sept. 30 of $49.9 million, or $0.47 per diluted share and adjusted net earnings of $46.9 million or $0.44 per diluted share, a 9-percent decrease compared with the same period in 2010.
For the nine months ended Sept. 30, gross auction proceeds were $2.7 billion, an 8-percent increase compared with the first nine months of 2010.
Net earnings for the third quarter ended Sept. 30 were $6.5 million, a 51-percent decrease compared with net earnings of $13.4 million for the same period in 2010.
Ritchie Bros. sold more than $770 million worth of equipment, trucks and other assets to online bidders during the first nine months of 2011, a 24-percent increase compared with $620 million a year ago. Internet bidders comprised about 50 percent of the total bidder registrations at Ritchie Bros. industrial auctions in the first nine months of 2011.
In July, Ritchie Bros. launched the Detailed Equipment Information program, Insurance Services and Powertrain Service Warranty. Also Ritchie Bros. Financial Services began providing financing options for customers that purchase equipment at Ritchie Bros. auctions.
“We are pleased with the successful launch of our new services and early reviews from our customers are very encouraging,” said Peter Blake, Ritchie Bros. CEO. “Our third-quarter earnings came in well below last year’s earnings, however our outlook for our full-year results remains unchanged and we believe we are on track to achieve our targets for the year. During the third quarter, market conditions became more challenging due to economic uncertainty and the sudden erosion of confidence, particularly in the U.S. market. This exacerbated the already tight supply of equipment, which reflects reduced manufacturer production over the last couple of years, inhibiting the variety of transactions in the used equipment market.”
Ritchie Bros. Auctioneers is based in Vancouver, B.C., Canada.
