Canadian auction house Ritchie Bros saw its profits halved in the third quarter at the sales of used machinery were hit by economic volatility in the US and a shortage in global supply.
During the quarter, sales fell by 10% to $673 million and profit in was cut by 51%, revenue falling from $13.4 million in 2010 to $6.5 million.
“During the third quarter, market conditions became more challenging due to economic uncertainty and the sudden erosion of confidence, particularly in the US market,” said CEO Peter Blake.
“This exacerbated the already tight supply of equipment, which reflects reduced manufacturer production over the last couple of years, inhibiting the velocity of transactions in the used equipment market.”
Despite the fall, Blake added that the end of the year was looking brigher for Ritchie.
“Our gross auction proceeds for October 2011 were approximately $280 million compared to $180 million achieved during the same month in 2010,” Blake said in a statement.
