Auctioneer Ritchie Bros. posts record 9-month profit

In a sign of tough economic times, industrial auction house Ritchie Brothers posted record earnings for the first nine months of the year, despite seeing its third-quarter profit stagnate.

The Richmond, B.C.-based auctioneer earned $74.3 million, or 70 cents a share, for the nine months ended Sept. 30, 2008. That represented a 14 per cent improvement compared with a profit of $67.0 million in the first three quarters of 2007.

For the most recent three months, Ritchie's earnings dipped slightly to $11.9 million, or 11 cents a share, compared with $14.9 million for the same quarter one year earlier.

Ritchie benefited in recent quarters as more firms and individuals sell land and equipment either in distressed sales or just to pay the operating bills.

Three-month stock chart for Ritchie Brothers Auctioneers Inc.

"With so many companies facing liquidity challenges right now, our value proposition is more compelling than ever," said Ritchie's chief executive officer Peter Blake.

So far, this year, Ritchie has sold more than 27,000 consignments at 257 industrial and agricultural auctions. These events generated $2.7 billion in gross receipts, up 17 per cent compared with the same nine months last year.

In the July-to-September quarter, Ritchie also saw its gross auction proceeds jump 15 per cent.

Ritchie has sold everything from farm combines to hydraulic excavators to a nine-hole golf course near Boyle, Alta., in a bidding process either at physical events or over the internet.