Ontario construction equipment dealer Strongco returns to profitability

Strongco Corp. (TSX: SQP) of Mississauga, Ontario, which sells and rents industrial, construction and other heavy equipment, pulled up its results in the fourth quarter, turning out a profit of $1.5 million from a year-earlier loss.

MISSISSAUGA, Ont.

Strongco Corp., which sells and rents industrial, construction and other heavy equipment, pulled up its results in the fourth quarter, turning out a profit of $1.5 million from a year-earlier loss.

That compares to a loss of $2.1 million at the same time a year earlier.

Revenue increased to $91.8 million from $67.6 million, as equipment sales rose 47 per cent to $62.1 million.

“While the markets Strongco serves improved by approximately 15 per cent from the fourth quarter of 2009, Strongco outperformed the market with total unit growth of greater than 45 per cent,” vice president and chief financial officer David Wood stated in a press release.

For the full year, Strongco reported a loss of $400,000 from essentially breakeven a year earlier. Revenues rose to $294.7 million from $291.8 million.

In its outlook for 2011, the company noted that construction markets are expected to push further improvement driven by the strong economy. As a result, Strongco expects increased demand for heavy equipment.

Canadian Press