Toromont Industries Jumps 11.5 Percent in Second Quarter Revenues
Toromont Industries, parent company to Toromont Cat, one of the world’s largest Caterpillar dealerships, posted $1,175 million in second quarter 2023 revenue, compared to $1,053.7 million in the second quarter of 2022, an 11.5-percent increase. Net earnings for the quarter were $139 million, compared to $111.7 million in the second quarter of 2022, a 24.4-percent increase. Operating income for the quarter was $178.8 million compared to $155.7 for the second quarter of 2022, a 14.8-percent hike.
“We are pleased with the operating and financial performance through the first half of the year,” said Scott Medhurst, president and CEO of Toromont Industries Ltd. “The Equipment Group executed well, delivering on several large customer orders, as well as growing rental and product support results. CIMCO revenue and bottom line improved in the quarter on project construction and higher product support activity. Across the organization, we continue to navigate through economic conditions and remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions.”
Rental revenue grew 7 percent for the quarter on a larger fleet and higher activity levels.
In the Equipment Group, revenue rose $104.2 million or 11 percent to $1.1 billion for the quarter. Equipment sales (up 10 percent) improved across most markets. New equipment sales increased 16 percent on delivery against the opening order backlog, reflecting improving inventory supply and customer delivery schedules. Rental revenue continued to grow on higher market activity, good execution and an expanded heavy and light equipment fleet. Product support had strong activity, up in both parts and service, on increased technician levels.
Toromont Industry is based in Toronto. Toromont Caterpillar’s head office is in Concord, Ontario. Toromont is the Caterpillar dealer for Ontario, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and Nunavut.
Toromont Cat is No. 14 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.