Toromont Industries, owner of one of North America’s largest Caterpillar dealers, posted a 14-percent jump in fourth quarter revenues, going from CDN $407.3 million in the fourth quarter of 2013 to CDN $465.7 (about U.S. $374 million) in Q414. Market activity and execution in the equipment group were solid across most segments.
The equipment group is composed of Toromont Cat and Battlefield Equipment – The Cat Rental Store, as well as recently acquired Ag West, an agricultural equipment and solutions dealer representing AGCO, CLAAS and other manufacturers’ product. Toromont also owns CIMCO, a market leader in refrigeration systems in industrial and recreational markets.
For the full year revenues increased 4 percent, on growth from the Equipment group. Rental, including Battlefield as well as rentals from the dealership, totaled $220.1 million, a 14-percent year-over-year increase. Rentals as well as product support surpassed records set in 2013, reflecting strong market activity coupled with solid operational execution.
Rental revenues were higher across all categories on improved utilization and an expanded fleet as the company invested CDN $52 million, net of disposals. Light equipment rentals increased 10 percent, heavy equipment 19 percent and power systems rentals leapt 65 percent year over year.
In the fourth quarter, rental revenues jumped 16 percent to CDN $63 million.
Looking ahead to 2015, Toromont expects competitive pressures to continue in the equipment market, while the weaker Canadian dollar will impact overall purchasing power. Looking at the longer term, large infrastructure investment is expected to continue. Broader product lines and investment in the rental business will also contribute to future growth, Toromont officials said.
Toromont Industries is based in Toronto. Its Battlefield Equipment Rental segment, based in Stoney Creek, Ontario, is No. 21 on the RER 100.