Canadian Caterpillar dealer Toromont posted CDN $1,226.9 million in revenue for the fourth quarter of 2023, compared to $1,128.5 million for the fourth quarter of 2022, an 8.7-percent increase. For the full year 2023, total revenue was $4,622.3 compared to $4,115.3 million in 2022, a 12.3-percent hike.
Rental revenue for the full year, including Toromont and its Cat Rental Stores, known as Battlefield Equipment Rentals, totaled $487.2 compared to $452.1 in 2022, a 7.8-percent increase.
“We are pleased with the operating and financial performance, which our teams delivered this year,” said Michael McMillan, president and CEO of Toromont Industries. “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 for the year 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."
In the fourth quarter, the Equipment Group increased revenue 9 percent, while Toromont’s CIMCO division, a much smaller portion of the company, grew its revenue 2 percent. For the full year, the Equipment Group increased revenue 12 percent while CIMCO’s revenue jumped 13 percent. Growth reflects improved supply from vendors, good opening order backlog, solid execution and the larger rental fleet investment. Product support revenues increased in both groups, reflecting continued activity in end markets. Toromont’s increased technician labor workforce continues to support growth.
Revenue was up $96.1 million or 9 percent to $1.1 billion for the fourth quarter. Equipment sales rose 15 percent, improved across most markets. New equipment sales jumped 19 percent on improving equipment availability, customer delivery schedules and year-end buying decisions. Rental revenue continued to grow on higher market activity, good execution and an expanded heavy and light equipment fleet. Product support activity was strong, with increases in both parts and service, reflecting good demand and increased technician levels.
For the full year, rental activity was higher across most geographical markets and product groups on similar reasons as for the quarter.
Bookings in the fourth quarter were $537.2 million, an increase of 53 percent. Customer demand improved late in the quarter, mainly in the construction sector, which had been slower throughout the year. Bookings in the full 2023 increased 14 percent year over year, with higher activity in mining, power and construction.
Looking ahead to prospects for 2024, McMillan said, “We are mindful of the uncertain economic environment and continue to monitor key metrics and supply dynamics. We have seen some softening in construction markets, reflective of the current economic environment. We will continue to follow our disciplined approach 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. With strong order backlog and balance sheet, we are well positioned entering 2024, and will continue to support the business through thoughtful capital employment.”
Headquartered in Toronto, Toromont Cat is No. 14 on the RER 100.
