May 26, 2011 / 1:22 PM / 7 years ago

UPDATE 1-Strongco posts Q1 profit on higher sales

* Q1 rev up 63 pct to C$87.5 mln (Follows alerts)

May 26 (Reuters) - Canada’s Strongco Corp’s posted a quarterly profit helped by higher equipment sales and rental revenues.

The company, which sells and rents equipment and machinery for residential and commercial construction, posted a net income of C$0.6 million or 5 Canadian cents per share, compared with a loss of C$2.0 million or 20 Canadian cents a share, a year earlier.

First-quarter revenue rose 63 percent to C$87.5 million. Equipment sales jumped 87 percent to C$56.0 million and rental revenues were C$5.5 million, up 49 percent from a year ago.

The company expects strong demand during the year for heavy equipment on increased oil sands activity in northern Alberta, it said in a statement.

Analysts, on average, had expected revenue of C$71.7 million on loss of 2 Canadian cents per share, according to Thomson Reuters I/B/E/S.

Shares of the Mississauga, Ontario-based company closed at C$5.30 on Wednesday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore;Editing by Vyas Mohan)

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