Canadian Cat Dealer Toromont Jumps Revenue 32.7 Percent in the Second Quarter
Toromont Industries, parent company of Eastern Canadian Caterpillar dealer Toromont, posted CDN $1,127.1 million in second quarter revenue compared to $849.6 million in the second quarter of 2020, an increase of 32.7 percent. For the first six months of 2021, Toromont posted $1,933.3 million, compared to $1,565.1 million for the first six months of 2020, an increase of 23.5 percent.
In the second quarter, Toromont reported higher sales in both the Equipment Group, which is the largest part of the company, and CIMCO, its refrigeration division. Product support revenues were 14 percent higher and rental revenues jumped 27 percent compared to a year ago, reflecting the initial impact of COVID-19 in the second quarter of 2020.
Improved activity in end markets continued. Strong deliveries from order backlogs and improving demand drove equipment revenue higher.
“The second quarter of 2020 was hardest hit by the pandemic response and restrictions, resulting in the increases reported in 2021 against this comparable,” said Scott Medhurst, president and CEO of Toromont Industries. “The Equipment Group reported strong prime product deliveries and excellent order bookings, reflecting robust activity levels. Rental and product support activity increased as equipment usage improved.”
In the equipment group, revenues jumped $239.8 million or 31 percent to $1.0 billion for the quarter on strong equipment sales combined with higher product support and rental activity in most markets and across all regions. For the first half, revenues were up $309.4 million or 22 percent to $1.7 billion year to date, with similar trends as the quarter. Operating income was up $44 million or 61 percent to $116.4 million reflecting higher revenues coupled with a lower expense ration to revenues. Bookings increased $335.9 million or 113 percent to $633.9 million in the quarter and $684.4 million or 108 percent to $1.3 billion year to date. Most of the sectors reported higher orders, particularly in the mining and construction sectors.
On July 15, the board of directors announced the retirement of company chairman Robert Ogilvie after 36 years. He joined Toromont and president in 1985, was CEO for 20 years and chairman for 34 years. The company increased its dividend consistently each year since 1989. In 1993, Toromont acquired the Ontario Caterpillar dealership. In 1996, it acquired the Battlefield Equipment Rental business, which then consisted of one store and now has more than 70 locations from Manitoba to Newfoundland. Battlefield Equipment Co., now No. 14 on the RER 100, is headquartered in Stoney Creek, Ontario.
Richard Roy, who joined the Toromont Board in 2018, has been appointed chairman. Roy is chairman of Toromont’s Environmental, Social and Governance Committee.
Toromont Cat covers Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and Nunavut.
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.