Cervus Reports Drop In New Truck Sales In First-Quarter Loss

Cervus Equipment reported a higher than expected loss and lower revenue in its first quarter, which included a sharp drop in truck sales.

The Canadian firm, which owns a network of heavy equipment dealers, incurred a loss of C$2.7 million (the Canadian dollar equals US$0.74) compared to C$0.1 million a year earlier, on revenue of C$234.8 million, a 6 percent decline.

Cervus blamed the higher loss on the implication of the International Financial Reporting Standard (IFRS) accounting standard and said its core businesses remained solid.

"While the adoption of IFRS 16 added a measure of financial complexity in the quarter, I am pleased with the underlying business performance in our key areas of focus," CEO Graham Drake said in a statement.

The company's transportation segment, which includes a network of Peterbilt dealerships in Canada, recorded a 22 percent drop in sales. It said the decline was the result of timing in factory deliveries. The decline was offset by a 10 percent increase in parts revenue.

The company will hold a call with analysts on May 9.

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