Ritchie Bros. Posts 1-Percent Increase in First Quarter Auction Revenue

Ritchie Bros. Auctioneers posted $845.4 million in gross auction proceeds in the first quarter, a 2-percent decrease compared to the same period in 2011, and includes $18.7 million of volume from AssetNation/EquipmentOne. Auction revenues grew 1 percent to $102.1 million compared to $101.3 million for the year-ago quarter, a 1-percent increase. During the first quarter, Ritchie conducted 36 unreserved industrial auctions in 12 countries in North America, Europe, the Middle East, Australia and Africa.

“We have started the year with a strong auction revenue rate, however, this did not totally compensate for the fall in our gross auction proceeds,” said Peter Blake, Ritchie Bros. CEO. “Our gross auction proceeds growth has been impacted by our territory manager productivity and the OEM production decrease and its impact on the mix of equipment we sell at our auctions. We have hired a record number of territory managers during the past year and are focused on coaching them to sell auction services and getting them as productive as quickly as possible. There was a significant OEM production decrease during the recession, and as a result the average age of items sold at our auctions over the past year is older and this has had a negative impact on the average value of what we are selling, affecting our gross auction proceeds.

“We see the rise in construction and transportation OEM production since 2010 as encouraging. In the near term, we remain confident we are on track to deliver and execute as planned for 2013.”

Blake added that he is encouraged by customers’ initial response to EquipmentOne, and also pleased with the results of the company’s first China auction.

Ritchie Bros. also sold more than $289 million of equipment, trucks and other assets to online buyers during the first quarter, a 5-percent increase compared to the first quarter of 2011.

Ritchie Bros. Auctioneers is based in Vancouver, B.C., Canada.