Toromont Inc., owner of one of the world’s largest Caterpillar dealerships, posted CDN $1,016.3 billion in the first quarter of 2024, compared to $1,046.4 in the first quarter of 2023, a 2.9-percent decline. Operating income dropped from $127.8 million in Q123 to $106.6 million in the recently concluded quarter, a 16.6-percent dip.
“Results for the first quarter of 2024 are reflective of the evolution toward more normalized supply and demand dynamics when compared to the market factors we experienced last year,” said Michael McMillan, Toromont president and CEO. “Overall we saw a decline in revenues year over year, however activity levels remain solid with healthy bookings and backlog across the business. The Equipment Group executed well given market dynamics and customer demand priorities. CIMCO revenue and bottom line improved for the year on good execution and higher product support activity. Across the organization, we continue to focus on our long-term investment strategies and remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions.”
For the Equipment Group, revenue decreased 3 percent to $928.1 million for the quarter as new equipment sales dropped 11 percent year over year, coupled with some delays in customer delivery schedules and buying decisions. Rental revenue was dampened partly because of adverse weather conditions. Product support was healthy with increases in both parts and service, reflecting good demand and increased technician levels.
Bookings in 2024 were $521.6 million, an increase of $176.1 million or 51 percent compared to a year ago, reflecting good order intake especially in the construction and mining sectors.
Toromont Cat, headquartered in Toronto, is No. 14 on the RER 100.
