Toromont Industries, owner of one of the world’s largest Caterpillar dealers, posted CDN $956 million in fourth quarter 2021 revenues, compared to $992.2 million in the fourth quarter of 2020, a 3.6-percent decrease. For the full year, however, Toromont reported $3,886.5 million compared to $3,478.9 million in 2020, an 11.7-percent increase.
Equipment Group revenues declined 3 percent on changes in timing of deliveries, including delays caused by supply chain disruptions. The company’s CIMCO unit dropped 7 percent, caused by timing of construction projects within the Canadian industrial segment, and reduced recreational activity caused by pandemic restrictions.
Full-year revenues increased on improved activity in end markets. Rental revenues increased 8 percent for the company.
In the Equipment Group, rental revenues increased on higher activity in light equipment and power systems, and higher rent-with-purchase-option revenues. Product support activity increased 4 percent year over year.
“Toromont delivered solid results in the fourth quarter and full year of 2021, reflective of our focus on operational execution and favorable operating leverage, including the benefit of ongoing integration and alignment of our dealership territory across Easter Canada,” said Scott Medhurst, Toromont president and CEO. “The Equipment Group reported strong prime product deliveries while rental activity and fleet utilization improved. However, pandemic and macroeconomic factors continued to affect customer buying patterns and prime product and parts availability. Product support activity improved in the Equipment Group, dampened somewhat by pandemic and supply-chain-related factors. We continue to leverage the learnings from the last two years with respect to cost structures and new ways to do business, while maintaining focus on customer service and support. Our order backlog at the end of 2021 was $1.3 billion, reflecting strong activity and the current supply environment.”
Supply chain challenges
Medhurst said current backlog levels are strong and supportive of Toromont’s future, however, the global supply chain, including vendor production, continues to be challenged.
“Product availability (prime equipment, components and parts) has been restricted and we will likely continue to see shifts in delivery schedules,” added Medhurst. “Inflationary pressures, supply-demand dynamics and pandemic-related developments are monitored closely. Technician hiring remains a priority and is essential to support the growing demand for our product support and project construction business. The diversity of our business, extensive product and service offerings, technology investments and financial strength, together with our disciplined operating culture, continue to position us well. We are proud to continue to provide the essential services and solutions that our clients are looking for, while remaining diligently focused on safeguarding our employees, and protecting our business for the future.”
Toromont Industries is based in Toronto. It is the parent company of Battlefield Equipment Rentals, which is No. 14 on the RER 100.