November 2, 2010 / 11:53 AM / 7 years ago

CORRECTED - CORRECTED-UPDATE 1-Ritchie Brothers Q3 tops estimates

(Corrects typo in company name in headline)

* Q3 EPS $0.13 vs est $0.09

* Q3 rev $82.2 mln vs est $78.6

* Sees market uncertainties in 2010, improvements in 2011

Nov 2 (Reuters) - Canadian industrial auctioneer Ritchie Bros Auctioneers Inc’s (RBA.TO) (RBA.N) quarterly results beat estimates on increased auction proceeds, but said it saw market uncertainty, especially in the United States, for the rest of the year.

The used equipment market has not yet returned to a balanced state, leading to challenging market conditions, the company said in a statement.

However, the auctioneer of equipment and trucks, expects a rise in both revenue and expenses in 2011 and beyond as a result of the strategic initiatives it plans to implement next year.

For the July-September quarter, the company’s earnings before special items rose to $13.5 million, or 13 cents a share, from $12.9 million, or 12 cents a share, a year ago.

Both gross auction proceeds and auction revenue rose 8 percent to $750.9 million and $82.2 million respectively.

Analysts on average had expected the company to earn 9 cents a share on revenue of $78.6, according to Thomson Reuters I/B/E/S.

As part of the initiatives, the company plans to launch a “bundle of value-added buyer services” that will include a customer finance program and enhanced equipment information, to boost customer confidence.

Shares of the company, which have gained 17 percent since it posted better-than-expected second-quarter results, closed at C$21.6 on Monday, on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Gopakumar Warrier)

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