Strongco 3Q outcomes: “strong efficiency regardless of softer markets”
Canadian seller Strongco reported it noticed revenues of $98 million Canadian throughout 3Q, down $1 million from its 2018 3Q outcomes of $99 million. Gross revenue, nevertheless, rose from $18 million in 2018 to $19 million for the quarter.
The corporate stated the income lower was impacted by decrease gross sales of building gear and cranes in Ontario and Alberta, partially offset by greater gross sales in Quebec. And articulated vans gross sales in Alberta and Quebec offset weaker gross sales of different varieties of building gear throughout the nation.
“For the third quarter of this yr, we’re happy to report improved profitability, the direct results of the actions taken over the previous few years to generate larger stability for the enterprise,” says Robert Beutel, government chairman. “Stronger rental and product help revenues had been the important thing drivers of top-line efficiency, offset by a decline in gear gross sales, as a result of softer markets estimated to be down 10 p.c year-to-date. Nonetheless, the ensuing improve in gross margins led to greater gross revenue, and mixed with decrease bills, left us nicely forward of the prior yr.”
Strongco additionally says it noticed greater rental revenues throughout all areas and stronger product help revenues, significantly in Quebec.
The corporate reported gear stock of $202.7 million, up from $167.5 million at Dec. 31, 2018 and $165 million at Sept. 30, 2018. The elevated stock is supporting elevated rental exercise and projected This autumn gross sales.
Strongco has 500 workers and 25 branches throughout Canada. It represents Volvo Development Gear, Case Development Gear and Manitowoc Crane, amongst different manufacturers.