March 4, 2009 / 2:24 PM / in 9 years

REFILE-UPDATE 1-Strongco Income Fund posts Q4 loss

(adds dropped word “waivers” in paragraph 2)

*Q4 loss C$0.25/unit vs C$0.26/unit profit last year

*says hiring freeze in place

*received waivers on certain covenant breaches

*requested amendments to certain covenant requirements

March 4 (Reuters) - Strongco Income Fund SQP_u.TO, a manufacturer and distributor of engineered systems and equipment, on Wednesday posted a quarterly loss as a weakening economy led its customers, particularly in Alberta, to defer purchases.

Strongco said it was not in compliance with certain covenants related to its operating line of credit as at December 31, 2008 but had received waivers from the bank and equipment lenders involved.

The Fund posted a net loss of C$2.6 million ($2.01 million), or 25 Canadian cents per unit for the fourth quarter.

The company, which sells belt conveyors, idlers, feed milling and grain handling equipment had earned C$2.7 million, or 26 Canadian cents per unit, last year. Revenue for the quarter rose 3 percent to C$110.6 million.

One analyst expected the company to earn 2 Canadian cents a share for the quarter.

The company also said it expects the economic downturn across North America to prevail for the balance of 2009, and to hurt unit sales of new equipment.

Units of the company closed at C$1.26 Tuesday on the Toronto Stock Exchange. (Reporting by Chakradhar Adusumilli in Bangalore; Editing by Vikram S Subhedar)

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