Toromont Industries, parent company to one of the world’s largest Caterpillar dealers, posted CDN $1,139.6 million in revenues in the third quarter of 2022, compared to $997.2 million in the third quarter of 2021, a 14.3-percent increase. Equipment sales increased 11 percent, with the Equipment Group rising 10 percent and CIMCO package revenues up 10 percent. Both groups, however, continue to experience delays in project construction and deliveries because of supply chain constraints.
Product support revenues grew 19 percent on increased demand. Rental revenues increased 13 percent on a larger fleet and higher utilization.
“The team delivered solid operating and financial performances in the third quarter,” said Scott Medhurst, president and CEO of Toromont Industries. “The persistent supply constraint pressures, market and economic variables continue to contribute to a fluid and complex operating environment. The Equipment Group reported good utilization activity in rental and positive product support demand, while uncertainties persist in timing of equipment and parts deliveries. CIMCO revenues improved in the quarter on project construction and higher product support activity. Across the organization, we remain committed to our operating disciplines, after-market strategies and customer solutions, as we manage through these uncertain conditions."
For the first nine months of the year, revenues were $3,080.6 million compared to $2,930.5 million in the first nine months of 2021, a 5.1-percent increase. The improved activity in rentals offset reductions in equipment and package revenues against a tough comparable last year, coupled with continuing supply chain issues.
"Activity remained sound with favorable backlog levels, but supply chains continue to be challenged,” added Medhurst. “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, in order to support our after-market and value-added product offering to meet and exceed client needs. 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."
The Equipment Group includes one of the largest Caterpillar dealerships by revenue and geographic territory, spanning the Canadian provinces of Québec, Ontario, Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, and most of the territory of Nunavut.
Toromont Cat is No. 13 on the RER 100.