Toromont Industries, parent company of Eastern Canada’s largest Caterpillar dealership, posted $1,080.9 million in revenue in the second quarter of 2022, compared to $1,127.1 million in 2021, a 4.1-percent year-over-year decline. Revenues decreased in the quarter against a tough comparable. Revenues in 2021 benefited from timing of project construction activity, as well as accelerated purchasing by customers as COVID restrictions began to ease, reflecting historically high activity. Equipment sales were down 19 percent compared to prior year, with the Equipment Group down 16 percent and CIMCO package revenues down 38 percent, as both groups continue to experience delays in construction project schedules and deliveries caused by supply chain constraints in the current year.
Product support revenues were 14 percent higher on increased demand and technician headcount, with work-in-process levels remaining high. Rental revenues grew 19 percent on a larger fleet and higher utilization.
For the first six months of the year, total revenues were $1,941.0 million compared to $1,933.0 million in 2021, an essentially flat year-over-year comparison. Rental revenues increased 23 percent and product support jumped 12 percent. However, these gains were offset by reductions in equipment sales and package revenues (down 12 percent), against a tough comparable last year, coupled with continuing supply chain issues in the current year.
A complex operating environment
“We are pleased with our operating and financial performance,” said Scott Medhurst, president and CEO of Toromont. “While end market activity levels remain solid, the persistent supply constraint pressures and inflation variables contributed to a fluid and complex 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 and parts deliveries.
“Activity remained sound with favorable backlog levels, but supply chains are challenged. This has restricted availability and is likely to result in delivery date extensions. Pandemic challenges remain and we continue to measure inflationary pressures and supply-demand dynamics as the economic environment continues to evolve and change. Technician hiring remains a priority to our product support offering and to meet growing demand. The diversity of our geographic landscape and markets served, extensive product and service offerings, technology investments and financial strength, together with our disciplined operating culture, continue to position us well."
Net earnings in the second quarter of 2022 were $111.7 million compared to $85.4 million in the second quarter of 2021. For the first six months of 2022, net earnings were $171.2 million, compared to $133.4 million in the first six months of 2021.
Toromont Cat is No. 13 on the RER 100. Toromont Cat is the Caterpillar dealer for Ontario, Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, and Manitoba.
