August 6, 2010 / 12:25 PM / in 7 years

UPDATE 1-Ritchie Bros profit slumps, warns of slower growth

* Q2 EPS $0.25 vs $0.37 yr ago

* Q2 auction revenue down 14 pct

* Sees H2 growth slower-than-expected

* Ups quarterly cash dividend 5 pct

Aug 6 (Reuters) - Industrial auctioneer Ritchie Bros Auctioneers Inc RBA.TO RBA.N posted a 33 percent fall in second-quarter profit and warned of slower-than-expected growth for the rest of the year due to the uncertainty in equipment markets, especially in the United States.

The Canadian company, which auctions industrial assets like equipment and trucks, raised its quarterly cash dividend by 5 percent to 10.5 cents a share.

Low interest rates, lack of confidence in the firmness of the pricing environment and lack of urgency of creditors to liquidate assets have hurt the company’s ability to generate consignments to sell at its U.S. auctions, Ritchie Bros said.

Gross auction proceeds in the quarter fell 14 percent to $951.6 million. Auction revenue fell 14 percent to $103.3 million.

Net income fell to $26.1 million, or 25 cents a share, from $38.8 million, or 37 cents a share, last year. Adjusted profit was 24 cents a share.

Analysts on average were expecting earnings of 23 cents a share, before special items, according to Thomson Reuters I/B/E/S.

Shares of the company closed at C$18.51 Thursday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Vinu Pilakkott)

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