Ritchie Bros. Auctioneers posted $49.3 million in net earnings, compared with $43.3 million in net earnings for the second quarter in 2011, an increase of 13.9 percent. Ritchie Bros. auction revenues for the first six months of 2012 grew 13 percent to $228.5 million, compared to $203 million for the same period a year ago.
Ritchie Bros. auction revenues for the second quarter of 2012 grew 11 percent year over year compared with $114.5 million for the second quarter of 2011.
For the first six months of 2012, gross auction proceeds were $2.1 billion, a 3 percent increase from 2011.
“We are pleased to have achieved gross auction proceeds of over $2 billion and adjusted earnings growth of 25 percent for the first half of this year, both of which are testaments to the hard work and dedication of our employee team in the face of a challenging used equipment supply environment,” said Ritchie Bros. CEO Peter Blake. “Although we experienced generally strong demand and good pricing for late-model equipment at our auctions, values began to level off towards the end of the second quarter. In addition, competition for late-model equipment remained intense during the second quarter. The combination of these market factors reduced the performance of our at-risk business which negatively impacted our second-quarter auction revenue rate.”
Blake said the company is seeing increased deliveries of new equipment, reducing original equipment manufacturer backlogs and making new equipment more readily available for end users. “This is resulting in a more balanced used equipment supply and demand environment, which should stimulate the supply of used equipment for our auctions. As a result we remain confident in our ability to execute and achieve our 2012 plan.”
Ritchie Bros. announced a 9-percent increase in its quarterly dividend.
Ritchie Bros. sold $669 million of equipment, trucks and other assets to online bidders during the first half of 2012, a 24-percent year-over-year increase compared to about $540 million in the first half of 2011.
To participate online in a Ritchie Bros. auction, visit www.rbauction.com.
Ritchie Bros. Auctioneers is based in Vancouver, B.C., Canada.