Construction equipment retailer RDO Equipment Co. said it expects to incur a fiscal fourth-quarter loss from operations of about $6.5 million and a one-time charges of about $7.5 million.
The company said the losses reflect a decrease in demand and inventory value for trucks and construction equipment and said it had an agreement to sell its truck operations.
The Fargo, ND-based company said the losses include those on its truck operations. The one-time charge accounts for exiting its truck business.
RDO said it signed a definitive agreement to sell its truck center business located in Roseville, MN, to Mack Trucks of Rochester Inc., owned and operated by Robert W. Nuss. Terms were not disclosed. The transaction is scheduled to close at the end of this month.
RDO said the sale is the first step in its plan to divest itself of its entire truck division except for its North Dakota stores that have been consistently profitable through the years. RDO will now narrow its focus to core business lines made possible by the new dealership agreements signed with John Deere Construction Co..
