Toromont Industries, owner of one of the world’s largest Caterpillar dealerships, posted CDN $1,174 million in third quarter 2023 revenue, compared to $1,086.5 million for the third quarter of 2022, an 8 percent increase. For the first nine months of 2023, total revenue was $3,395.4 million, compared to $2,986.8 million for the first nine months of 2022, a 13.7-percent increase.
In the third quarter, the Equipment Group rose 7 percent on higher equipment sales, product support revenues were up 7 percent, and rental activity increased 11 percent.
Revenue for the Equipment group was $1.1 billion for the quarter. Rental revenue increased on higher market activity, good execution and an expanded heavy and light equipment fleet, Toromont said.
“We are pleased with the operating and financial performance through the first nine months of the year,” said Michael McMillan, Toromont president and CEO. “The Equipment Group executed well, delivering against the opening order backlog in line with customer schedules and improvement in inventory flow, coupled with good growth in rental and product support activity as well as a continued focus on expense control. CIMCO revenue and bottom line improved in the quarter on good execution and higher product support activity. Across the organization, we continue to navigate through uncertain economic conditions and remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions.”
McMillan elaborated on the overall market conditions and Toromont’s strategies. “We are mindful of the uncertain economic environment and continue to monitor key metrics and supply dynamics,” he noted. “We have seen some softening in demand for equipment in construction markets after a period of strong growth. We will continue to follow our disciplined approach, working our operational model while delivering results for our customers, suppliers and employees. While focused on managing discretionary spend, we continue to recruit technicians, to support our critical after-market service strategies and value-added product offering over the long term.”
Toromont’s Caterpillar dealerships cover Quebec, Ontario, Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island. A major player in rental, Toromont Cat, headquartered in Toronto, is No. 14 on the RER 100.
