Toromont, one of the world’s largest Caterpillar dealerships covering eastern Canada, posted CDN $992.2 million in fourth quarter 2020 revenue compared to $1,025.2 million in the fourth quarter of 2019, a modest 3.3-percent decrease. For the full year, the company reported $3,4778.9 million compared to $3,678.7 million in 2019, a 5.4-percent drop. Operating income for the fourth quarter of 2020 was $127.2 million compared to $128.2 million in Q420, a less than 1 percent decline. For the full year, operating income was $372.4 million compared to $412.5 million in Q419, a 9.7-percent decline.
“In what has been a unique year of challenges and opportunities, we are very pleased with the performance of our team and overall results,” said Scott Medhurst, president and CEO of Toromont Industries Ltd. “The Toromont team took decisive action, remaining focused on safeguarding our employees, servicing our customers’ needs and protecting our business for the future. We were fortunate early on to have been designated an essential service in all of our territories, and since initial shutdowns and restrictions, we experienced gradual improvement in most market segments for the balance of the year. We appreciate our entire team’s incredible effort and on-going commitment to adapt to changes in the business environment, safely support our customer’s requirements, all while facilitating a critical system conversion in the Atlantic and Quebec operations, which sets us up well for the next phase of our integration.”
In the fourth quarter, revenues for the Equipment Group, which is the majority of the company’s business, were down 5 percent on lower economic activity levels stemming mainly from the pandemic. Revenues at CIMCO, its refrigerated systems business increased 3 percent primarily from progress on construction projects within the Canadian industrial segment. For the full year, the Equipment Group’s revenues slid 5 percent while CIMCO declined 7 percent.
Rental revenues were lower on reduced activity in light equipment and a lower RPO fleet. Product support activity was off 1 percent from 2019 as market activity continues to improve from levels experienced earlier this year.
For the year, revenues were down 5 percent or $177.9 million to $3.2 billion on reduced economic activity experienced from the onset of the pandemic earlier in the year. Equipment sales, product support and rental activity were lower across most geographic markets and product groups.
In the Equipment Group, bookings in 2020 increased $101.8 million to $1.6 billion (about 7 percent), with increases across all market segments. Bookings in the fourth quarter were up 36 percent ($148.2 million) to $563.3 million, on strong construction, mining, and agricultural orders, partially offset by lower power systems and material handling lift truck orders. Backlogs increased $100.7 million (37 percent) to $373.0 million, most of which is expected to be delivered in 2021.
“While market activity has improved gradually through the latter half of the year, it remained below last year’s level,” added Medhurst. “Our order backlog improved heading into 2021, and our workforce and information technology systems are well positioned to support the current and future operating environment. The diversity of our geographical landscape and markets served, extensive product and service offerings, and financial strength together with our disciplined operating culture, continue to position us well for the long term.”
Toromont is the parent company to Battlefield Equipment Rentals, which operates the Cat Rental Store operations. Battlefield is No. 14 on the RER 100.
Toromont Cat covers Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and Nunavut.
