Ritchie Bros. Auctioneers 1st-quarter profit falls 7 percent

NEW YORK—Canada-based industrial equipment auctioneer Ritchie Bros. Auctioneers Inc. said Tuesday its first-quarter profit slipped 7 percent on increased operating expenses.

For the quarter ended March 31, the company reported income of $16.4 million, or 16 cents per share, compared with $17.6 million, or 17 cents per share, in the year-ago period.

Analysts polled by Thomson Financial, on average, estimated earnings of 20 cents per share on sales of $80.7 million.

Revenue rose 19 percent to $81.4 million from $68.5 million in the first quarter of 2007.

Total auction proceeds increased 12 percent to $782 million from $700.4 million in the prior-year quarter.

Ritchie Bros. said the dip in earnings was primarily a result of increased operating expenses, due to ongoing investments in company initiatives and hiring more personnel. General and administrative expenses jumped 35 percent to $41.6 million.

"We continued to take steps to position our business for sustainable long-term earnings growth by hiring more great people, expanding our international network of auction sites and investing in process improvement initiatives, and this resulted in higher operating expenses in the first quarter of 2008," Chief Executive Peter Blake said in a statement.

Shares lost 50 cents to $28.05 in premarket trading.

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