Toromont, owner of the Caterpillar dealership for Ontario and other eastern Canadian provinces, posted equipment group revenues of 7 percent to $439.3 million in the third quarter, driven by increased product support and, to a lesser extent, increased heavy equipment and power rental revenues. Equipment sales were flat compared to a year ago, when the company sold $43 million into a single project. Sales to mining and agriculture increased, even though both markets are experiencing tight conditions.
The weaker Canadian dollar provides a positive impact on revenue as pricing is adjusted to reflect the higher cost of U.S.-sourced equipment and parts. Operating income jumped 9 percent compared to a year ago, reflecting higher revenues and good expense management.
Equipment group revenues hiked 11 percent to $1.2 billion for the first nine months of 2015.
“We are pleased with the steady performance of Toromont through these times of challenging and highly competitive market conditions,” said Scott Medhurst, president and CEO of Toromont Industries. “In the Equipment Group, product support, heavy rents and power rentals continued to fuel growth, benefiting from focus and the increased installed base of equipment.”
Toromont also owns Battlefield Equipment Rentals, No. 19 on the RER 100.