Toromont Industries, owner of one of the world’s largest Caterpillar dealers, posted CDN $1,025.2 million in revenue in the fourth quarter of 2019 compared to $966 million for the third quarter of 2018, a 6.1-percent increase. For the full year, Toromont reported $3,678.8 million compared to $3,5024.2 million in 2018, a 5-percent increase.
“Toromont delivered solid results in the fourth quarter and full year of 2019,” said Scott Medhurst, president and CEO. “The Equipment Group recorded growth across its expanded territory. Reflecting on the substantial acquisition completed in late 2017, we are pleased with our progress to date in integration of operations and the benefits achieved, as we leverage best practices and operational efficiencies. The process is ongoing. CIMCO continued to grow its product support business which contributed positively to the bottom line.”
Net earnings in 2019 were $286.8 million, a 14-percent hike from 2018, with earnings per share also jumping 14 percent. Revenue growth and mix, expense control and lower interest costs on reduced debt levels contributed to the improved results.
The equipment group makes up more than 90 percent of the companies’ revenues and it posted $3.3 billion for the year, a $182.9 million increase, with growth in product support, rentals and used equipment sales. New equipment sales were unchanged from 2018, which included large mining deliveries. Fourth quarter revenues jumped 7 percent to $933.1 million, increasing in all revenue streams except used equipment, which were relatively flat.
Bookings in 2019 decreased $68.5 million (4 percent) to $1.5 billion, with increases in construction orders more than offset by declines in mining and power. Fourth quarter bookings dropped 2 percent to $415.1 million with increases in power systems and material handling lift truck orders.
“Infrastructure projects and broader construction activity offer growth in equipment sales, product support and rentals for our equipment,” added Medhurst. “Opportunities exist for equipment supply into the mining sector, especially in support of the replacement and expansion requirements at existing mine sites. Overall, we are very pleased with the progress achieved so far on the transition and integration fronts and remain cautiously optimistic about the significant potential which lies ahead. CIMCO continues to grow its product support, reflecting its strong presence and solid reputation as a leader in the key markets it serves.”
Toromont Industries’ equipment group spans the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Quebec, Ontario and Manitoba and most of the territory of Nunavut.
Toromont’s rental division, Battlefield Equipment Rentals, based in Stoney Creek, Ontario, Canada, is No. 14 on the RER 100.
