In a positive sign for the equipment industry, one of Canada's largest agriculture equipment and construction equipment dealerships has announced record growth for the second quarter.
The company said its net sales increased 64.5 percent to $155.1 million, compared to net sales of $94.3 million for the second quarter of fiscal 2008. This growth in revenue was due to improved sales from all three of the company's primary revenue sources.
New equipment sales were $90.6 million in the second quarter of fiscal 2009 compared to $61.7 million in the prior year period. Used equipment sales were $38.8 million in the second quarter of 2009, up 188 percent compared to $13.5 million in the second quarter of fiscal 2008.
Revenue generated from product support increased to $24.4 million in the second quarter of fiscal 2009 compared to $16.8 million in the second quarter of fiscal 2008.
The company said it maintained a strong focus on the reduction of aged construction equipment inventory which put pressure on the margins.
Some of the world's biggest equipment manufacturers have already reported earnings losses, reflecting a global drop in demand due to the recession. But most of the impact was seen overseas, with smaller declines in North America.