August 2, 2012 / 11:59 AM / in 5 years

Ritchie Bros' profit rises 17 pct, increases dividend

* Q2 earnings per share $0.29 vs $0.25 year earlier

* Auction revenue up 11 pct

* Gross auction proceeds rises 4 pct

Aug 2(Reuters) - Ritchie Bros Auctioneers Inc , which auctions industrial equipment, posted a 17 percent rise in profit on strong equipment pricing and demand and the company raised its quarterly dividend by 9 percent.

Net profit rose to $31.3 million, or 29 cents per share, from $26.8 million, or 25 cents per share, a year earlier.

Auction revenue rose 11 percent to $127.2 million compared to $114.5 million for the same period in 2011.

On an adjusted basis, the company earned $32.5 million, or 30 cents per share.

Gross auction proceeds for the company, which auctions used and unused trucks and cranes from Caterpillar Inc, Komatsu Ltd and Liebherr, rose 4 percent to $1.2 billion.

Other companies offering similar services include IronPlanet, Great American Group, GoIndustry, Hilco Industrial, Alex Lyons & Son and Dubai’s World Wide Auctioneers.

Ritchie Bros, which began more than half a century ago as a family run business in British Columbia, increased its quarterly dividend to 12.25 cents per share.

Auction revenue rate, which is auction revenue as a percentage of gross auction proceeds, was 10.65 percent compared with 9.96 percent a year earlier.

Ritchie Bros, which acquired AssetNation Inc during the quarter, took a related charge of $40 million in the second quarter.

Shares of Vancouver, British Columbia-based Ritchie Bros, which has a market value of C$2.19 billion, closed at C$20.54 on Wednesday on the Toronto Stock Exchange.

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