Toromont Industries last week reported a 43-percent jump in first-quarter revenue and a 38-percent increase in net earnings. Both the equipment and compression groups reported strong operating results.
The equipment group revenues were up 6 percent over last year’s first quarter because of strong rental and product support activity. Operating income in the equipment group increased 30 percent year over year, based on improved margins, better rental fleet utilization and a larger contribution from the product support business.
Rental volume for the first quarter was CD $24.6, up from CD $20.9 million in last year’s first quarter, an 18-percent hike. The company said improved utilization of heavy equipment contributed to the increase, along with the opening of a new branch in Barrie, Ontario, in early 2006.
The Cat Rental Stores, which also operate under the name Battlefield Equipment Rentals, brought in rental volume of U.S. $74 million in 2005. The company is No. 23 on the new RER 100.