Strongco announce Second Quarter 2010 Results
12 August 2010Strongco Corporation has announced a 9% fall in revenue for Q2 2010.
The Canadian Fassi dealer’s revenues were CAD69.6m, down 9% from last year; with EBITDA from continuous operations were CAD4.2m, down from CAD5.1m.
Gross margin fell to 20.3% of revenue, from 21.4%. Robert Dryburgh, president and chief executive officer of Strongco, was optimistic for the future of this market: “During the second quarter construction markets began to reflect growing confidence in the Canadian economy.” He added, “The market for construction equipment has been slow to emerge from recession.”
The recession has caused many customers to turn to renting rather than purchasing equipment. David Wood, vice president and chief financial officer, said: “Many customers opted to rent equipment and extend the life of their current machinery by repairing and refurbishing, instead of buying new. As a result, while equipment sales were down in the quarter, rentals were up.”
Construction markets are beginning to show signs of recovery with equipment demands increasing as confidence returns to the Canadian construction industry.
