Canadian dealer Strongco reported it saw revenues of $98 million Canadian during 3Q, down $1 million from its 2018 3Q results of $99 million. Gross profit, however, rose from $18 million in 2018 to $19 million for the quarter.
The company said the revenue decrease was impacted by lower sales of construction equipment and cranes in Ontario and Alberta, partially offset by higher sales in Quebec. And articulated trucks sales in Alberta and Quebec offset weaker sales of other types of construction equipment across the country.
“For the third quarter of this year, we are pleased to report improved profitability, the direct result of the actions taken over the past few years to generate greater stability for the business,” says Robert Beutel, executive chairman. “Stronger rental and product support revenues were the key drivers of top-line performance, offset by a decline in equipment sales, due to softer markets estimated to be down 10 percent year-to-date. Nevertheless, the resulting increase in gross margins led to higher gross profit, and combined with lower expenses, left us well ahead of the prior year.”
Strongco also says it saw higher rental revenues across all regions and stronger product support revenues, particularly in Quebec.
The company reported equipment inventory of $202.7 million, up from $167.5 million at Dec. 31, 2018 and $165 million at Sept. 30, 2018. The increased inventory is supporting increased rental activity and projected Q4 sales.
Strongco has 500 employees and 25 branches across Canada. It represents Volvo Construction Equipment, Case Construction Equipment and Manitowoc Crane, among other brands.