Toromont Industries Boosts Rental Revenue 29 Percent in First Quarter 2022
Toromont Industries, parent company of Toromont, one of the world’s largest Caterpillar dealerships, posted $860.1 million in revenues for the first quarter of 2022, compared to $806.2 million, a 6.7-percent year-over-year increase.
The revenues reflected solid activity levels in most areas and good execution from its teams, Toromont said. Rental revenues grew 29 percent on a larger fleet and higher utilization. Product support revenues were 10 percent higher on increased demand and technician headcount. Equipment sales were relatively unchanged year over year with Equipment Group growth of 4 percent largely offset by weaker CIMCO package revenues dropping 7 percent as construction projects schedules and deliveries in both cases were deferred because of supply chain constraints.
In the Equipment Group, revenues jumped 8 percent to $786.6 million for the quarter with higher activity in rental, used equipment and product support, combined with moderate new equipment sales across most regions. Operating income hiked 22 percent reflecting higher revenues and gross margins. Bookings in the first quarter of $567.1 million, a 17-percent drop against strong mining and construction sector orders in the comparable period in 2021. Backlogs of $1.3 billion at the end of March 2022 were up $624.3 million or 85 percent from the end of March 2021, reflecting healthy order levels in the latter part of 2021. Approximately 80 percent of the backlog is expected to be delivered this year, subject to receipt of equipment from suppliers.
“We are pleased with our operating performance and financial results, through a challenging business environment,” said Scott Medhurst, president and CEO of Toromont Industries. “While end market activity levels remained solid as pandemic restrictions eased in some markets, persistent supply constraint pressures and inflation contribute to a fluid, complex and uncertain operating environment. The Equipment Group reported good activity in rental and product support, while global supply chain challenges persist and continue to impact timing of equipment deliveries. CIMCO revenues decreased in the quarter on timing of project construction schedules, while product support activity improved. Across the organization, we are continuing to leverage the learnings from the past year and maintain our operating disciplines, while incorporating new ways to do business with uncertain conditions.”
Toromont is headquartered in Toronto. Its Battlefield Equipment Rentals Cat Rental Store operations is headquartered in Stoney Creek, Ontario, and is No. 14 on the RER 100.
Toromont Cat is a Caterpillar dealer covering Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and Nunavut.