Toromont, owner of one of the world’s largest Caterpillar dealers, posted second quarter revenues of CDN $978.3 million compared to $951.3 million for the second quarter of 2018, a 1.8-percent increase. For the first six months of the year, total revenue was $1,678.3 million compared to $1,638.1 million in the same period last year, a 2.5-percent rise.
In the equipment group, revenues rose $21.3 million or 2 prcent to $895.5 million for the quarter, with the company citing robust growth in product support, rentals and used equipment sales, while new equipment sales declined. Year-to-date, revenues rose $42.2 million or 3 percent to $1.5 billion with similar trends as the quarter.
“The company delivered solid results in the second quarter, as we continued to leverage the strength of our larger organization in this second year of integration across our Equipment Group,” said Scott Medhurst, president and CEO of Toromont Industries. “Momentum in product support continued in both groups on the larger and growing installed bases, while the investments to date in growing and diversifying the rental fleets across Eastern Canada are beginning to yield results.”
Bookings increased $4.4 million or 1 percent in the quarter but were down $72.2 million or 9% year-to-date. Construction orders were strong in the quarter and year-to-date while decreases were reported in other market sectors. Backlogs of $403.4 million at the end of June 2019 were down $3.6 million or 1 percent from the end of June 2018. Substantially all of the backlog is expected to be delivered this year.
The 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. In addition, the Group includes one of the industry’s leading rental operations (Battlefield Equipment Rentals), a complementary material handling business and an agricultural equipment business.
It also owns CIMCO, a market leader in the design, engineering, fabrication and installation of industrial and recreational refrigeration systems. CIMCO comprises less than 10 percent of the company’s revenue.
Battlefield Equipment Rental is No. 14 on the RER 100.