Ritchie Bros. has reported
net earnings for the six months ended June 30, 2012, of $49.3 million and adjusted net earnings of $50.5 million, representing a 25-percent increase in adjusted net earnings over the same period last year.
In comparison, the six months ended June 30, 2011, saw net earnings of $43.3 million and adjusted net earnings of $40.3 million.
The company's auction revenues for the first six months of 2012 grew 13 percent to $228.5 million compared to $203 million for the same period in 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 Peter Blake, Ritchie Bros. CEO. "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 continued: "As we move into the third quarter we are seeing increased deliveries of new equipment, reducing original equipment manufacturers 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."