Toromont Industries, owner of one of the world’s largest Caterpillar dealerships, posted CDN $997.2 million in revenue in the third quarter of 2021, compared to $921.7 million in the third quarter of 2020, an 8.2-percent increase. Product support revenues were up 4 percent compared to a year ago, and rental revenues jumped 6 percent year over year.
For the first nine month of the year, Toromont posted $2,930.5 million compared to $2,486.7 million in the first nine months of 2020, a 17.8-percent jump, on improved activity in end markets compared to 2020, which was hit by pandemic restrictions and shutdowns. Deliveries from healthy order backlogs and on strong demand drove equipment and packages revenues 32 percent higher, while product support increased 6 percent and rental revenues 7 percent.
The equipment group, which makes up the majority of Toromont’s revenues, increased 10 percent to $914.4 million for the third quarter on strong equipment sales, with product support and rental activity continuing to increase. Revenue jumped 17 percent to $2.7 billion year to date.
“We are pleased with our operating performance, financial results, cash generation and financial position through a challenging business environment,” said Scott Medhurst, president and CEO of Toromont Industries. “Overall end market activity levels remained solid with the easing of pandemic restrictions and shutdowns. Nonetheless, we continue to operate in a very fluid, complex and uncertain operating environment. The Equipment Group reported strong prime product deliveries and excellent order bookings. Rental activity and fleet utilization improved with more favorable markets. Tight supply of equipment from manufactrers coupled with stronger sales activity versus last year have resulted in lower equipment inventories.
Cimco revenues decreased in the quarter on timing of project construction schedules, while product support activity improved.
“Activity remained sound as demonstrated by new bookings and our current backlog levels, but production schedules and supply chains are challenged," added Medhurst. "This has restricted availability and is likely to result in delivery date extensions. We continue to monitor cost pressures, supply demand dynamics and potential distribution disruptions as the pandemic unfolds. Technician hiring remains a priority to our product support offering and to meet growing demand. The diversity of our geographic landscapes and markets served, extensive product and service offerings, technology investments and financial strength, together with our disciplined operating culture, continue to position us well.”
Toromont’s Caterpillar dealership 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.
Its Cat Rental Store operations, Battlefield Equipment Rentals, is No. 14 on the RER 100.