Toromont Industries, owner of one of the largest Caterpillar dealers in the world, posted $975.2 million in revenue in the third quarter of 2019, compared to $900.1 million in the third quarter a year ago, an 8.3-percent increase. Operating earnings were $114.5 million compared to $99.8 million a year ago, a 14.7-percent jump. Net earnings increased from $68.7 million in Q318 to $79.7 million this year, a 16-percent climb. On a year-to-date basis, net earnings and EPS were up 17 percent.
In the Equipment Group, which makes up about 90 percent of the company’s revenues, revenues jumped 10 percent to $881.5 million in the third quarter.
For the first nine months of the year, company revenues were $2,653.5 million compared to $2,538.2 million last year, a 4.5-percent hike.
“The company delivered strong results in the quarter on solid execution and disciplined expense management,” said Scott Medhurst, president and CEO. “The increasing proportion of product support and rental revenues to total revenues across the enterprise continues to contribute positively to higher earnings.”
In the equipment group, bookings increased $11.6 million or 4 percent in the third quarter but were down $60.5 million or 5 percent year-to-date.
“Infrastructure investment and broader construction activity continue to present opportunities for the Equipment Group,” added Medhurst. “Opportunities also exist for equipment supply into the mining sector over the longer term, albeit slower to date this year. Prospects for continued growth in product support and rental business remain positive. The diversity of our geographical landscape and markets served, extensive product and service offerings and financial strength combined with a disciplined operating culture, position us well for the long term.”
Toromont’s equipment group includes one of the larger Caterpillar dealerships by revenue and geographic territory - spanning the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario and Manitoba, in addition to most of the territory of Nunavut. The Group includes rental operations, a complementary material handling business and an agricultural equipment business. CIMCO is a market leader in the design, engineering, fabrication and installation of industrial and recreational refrigeration systems.
Toromont also owns Battlefield Equipment Rentals, based in Stoney Creek, Ontario, Canada, and No. 14 on the RER 100.
