Toromont’s Equipment Group Grows Revenues in Q4, Full Year 2016

Toromont Industries, parent company to one of Canada’s largest Caterpillar dealers, posted CDN $1,867.3 million in revenue in 2016, compared to $1,802.2 million in 2015, a 3.6-percent hike.

Michael Roth

Feb. 7, 2017

Part of the showroom at Battlefield Equipment Rentals Brantford Ontario Canada — Part of the showroom at Battlefield Equipment Rentals, Brantford, Ontario, Canada.

Toromont Industries, parent company to one of Canada’s largest Caterpillar dealers, posted CDN $1,867.3 million in revenue in 2016, compared to $1,802.2 million in 2015, a 3.6-percent hike. In the fourth quarter, Toromont reported $480.7 million in revenue compared to $472 million in the fourth quarter of 2015, a 1.8-percent increase.

Toromont’s equipment group increased 1 percent to $1.6 billion with ongoing product support growth offsetting lower total equipment sales and rentals. Operating income jumped 4 percent.

For the fourth quarter, revenues of $407.2 million were relatively flat year over year, with higher rental revenues, product support and used equipment sales offsetting lower new equipment sales.

“We are encouraged by the long-term outlook for infrastructure spending and expect to have better visibility into future spending initiatives following 2017 budget announcements from the federal and provincial governments,” said Toromont Industries president and CEO Scott Medhurst. “Equipment Group customers have been restrained with their capital pending clarity on government investment levels, and this has contributed to the softness experienced in many of the markets served.”

Toromont owns the Caterpillar dealership in Ontario, Manitoba, Nunavut, Newfoundland and most of Labrador. It operates a Cat Rental Store chain called Battlefield Equipment, No. 22 on the RER 100.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.