A Transformational, Record Year for Ritchie Bros. in 2015, CEO Says
The year 2015 was transformational, with record revenue and multiple opportunities for expansion and acquisition ahead, Ritchie Bros. Auctioneers CEO Ravi Salingram said as the auction specialist summed up its 2015 performance.
Ritchie Bros., the world’s largest industrial auctioneer, sold about $4.25 billion of equipment through 345 unreserved auctions and online during 2015, the company said, setting a new single-year record. Gross auction proceeds (GAP) increased 1 percent compared to 2014. TAP growth internationally was muted by the depreciation of local currencies against the U.S., thus on an organic basis using foreign exchange rates consistent with comparable periods in 2014, GAP grew 8 percent in 2015 compared to 2014.
“Much of this growth can be attributed to our success in both Canada, where GAP grew 14 percent in local currency, and the U.S. where GAP grew 7 percent,” said Saligram. “In the fourth quarter, pricing softness did affect the used equipment market, as well as our GAP performance. However, we continue to believe there are growth opportunities for the company as we enter 2016, and remain focused on executing our strategic plan.
“2015 was a transformational year for Ritchie Bros. We’ve further integrated EquipmentOne into our sales and marketing initiatives, welcomed world-class leadership to our global team, and built a stronger platform on which to grow our business through both organic growth initiatives and acquisitions. We see many opportunities to acquire companies that could expand the breadth of our services and scale of our operations.”
During the fourth quarter of 2015, Ritchie generated GAP of $1.1 billion, a 9 percent drop compared to the record fourth quarter of 2015, as market values of used equipment declined during the quarter.
Ritchie Bros. attracted record online bidder registrations and sold approximately $1.9 billion of equipment, trucks and other assets to online buyers at Ritchie Bros. auctions and EquipmentOne customers in 2015, a 6 percent increase compared to 2014 and the highest amount ever sold online by the company in one year.
Ritchie Bros. currently has 94 auctions scheduled internationally in 2015. The company is based in Vancouver, B.C., Canada.
