Mississauga, Ontario-based Strongco Income Fund last week posted a 6.3-percent first-quarter revenue drop to CAD $78.8 million (about U.S. $66 million), with its equipment division revenues dropping 4.8 percent to $73 million. However rental revenues jumped 30 percent for the quarter to CAD $4.3 million (about U.S. $3.6 million), while product support revenues leapt 23 percent to $24.6 million.
Strongco is one of North America’s largest Volvo equipment dealerships. It acquired Champion Road Equipment at the end of the first quarter 2008.
Strongco officials said the overall outlook for Canada is extremely uncertain, while questionable prospects for near-term oil and gas production depresses the Alberta market. “While various levels of government have committed to stimulus programs that include infrastructure spending, the impact of these initiatives and the timing of any spending is not yet clear,” officials said. “In the current climate, it is expected that reduced demand for new equipment will prevail in the markets in which Strongco operates.”
Strongco also represents Case, Manitowoc, Cedarapids, Fassi, Allied, Gomaco and ESCO.