RERMAG

Toromont Improves 2Q Revenues 9 Percent

Toronto-based Toromont Industries last week reported revenues for the second quarter ended June 30, of CDN $344.6 million, a 9-percent increase from $315.3 million in the second quarter of 2010. Earnings per share in the quarter were $0.30, 30-percent higher than $0.23 in Q110. Revenues for the first six months were CDN $606.3 million, a 15-percent jump from $528.2 million in the year-ago period.

"Our customers are continuing to recover from the recession,” said Robert Ogilvie, chairman and CEO of Toromont Industries Ltd. “Product support and rental activity were at record levels. Second-quarter bookings were up 15 percent, reflecting strength in mining, construction and road building industries. Backlogs were up 45 percent over last year."

Equipment Group revenues, including rental operations of Battlefield Equipment Rentals, totaled $289 million in the quarter, up 9 percent versus the similar period of 2010 on strong new machine sales and higher rental and product support activities. Rental revenues of $38 million were a record for this time of year, while product support revenues of $87 million were also an all-time record. Operating income increased 7 percent in the second quarter and was up 24 percent through the first half of the year compared to last year, largely tracking the higher revenues.

The company completed the spinoff of its natural gas compression and processing equipment business, Enerflex Ltd., to its shareholders as a separate, publicly traded company effective June 1. The financial results of Enerflex have been included in the company's results of operations up to that effective date and are reported as discontinued operations. A net gain of $133.2 million, $1.73 per share basic, was recorded on the spinoff of Enerflex.

The board of directors declared a quarterly dividend of $0.11 per share, payable Oct. 3, to shareholders of record at the close of business on Sept. 15. This represents a 10-percent increase in Toromont's regular quarterly cash dividend.

Toromont Industries Ltd. operates through two business segments: The Equipment Group and CIMCO. Part of the Equipment Group, Battlefield Equipment Rentals, based in Stoney Creek, Ontario, is No. 20 on the RER 100.
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