Mississauga, Ontario-based Strongco Corp. grew revenues 36 percent in the fourth quarter on a year-over-year basis, from CA$67.5 million in 2009 to CA$91.8 million (about U.S. $94.5 million) in 2010. For the full year, revenues increased slightly from CA$291.8 million in 2009 to $294.7 million in 2010.
Strongco is one of the largest multi-line mobile equipment distributors in Canada, selling and renting new and used equipment and providing after-sale product support and rental. It represents Volvo Construction Equipment in seven Canadian provinces including Alberta, Ontario and Quebec; Case Corp., which Strongco represents in much of Ontario, and Manitowoc, which it represents in eastern Canada.
Rental revenues were $22.2 million in 2010, a 55-percent increase compared with $14.3 million in 2009. Rental activity was higher generally across all product categories and in all regions, particularly with larger equipment in Alberta and Quebec. The company posted $8.3 million in rentals in eastern Canada; $6 million in Ontario; and $7.9 million in Alberta, more than double the rental total in 2009.
“Revenues in the fourth quarter, once again, improved over the preceding quarter and were substantially ahead of the fourth quarter last year,” said Robert Dryburgh, president and CEO. “Importantly, we improved our national market share over both the third quarter this year and the fourth quarter of 2009. Equipment sales were up 47 percent over the fourth quarter of 2009, benefitting from our commitment to rental product and the resultant large volume of rental purchase option conversions in the quarter. Our order intake level is being sustained after steadily increasing through the first half of the year and we enter 2011 with this encouraging indication of strong demand.”
Strongco expects construction markets to improve across Canada throughout 2011, leading to increased demand. Strongco also recently acquired Chadwick-Baross, which does business in Maine, New Hampshire and Massachusetts, and will give the company the opportunity to grow in the United States as well.
Strongco is No. 82 on the RER 100.