Canadian Caterpillar Dealer Toromont Industries Boosts Revenue 20.3 Percent in Fourth Quarter
Toromont, parent company to one of the world’s largest Caterpillar dealers, posted CDN $1,150.1 million in the fourth quarter of 2022, compared to $956 million in the fourth quarter of 2021, a 20.3-percent increase. For the full year, Toromont revenue totaled $4,230.7 million, compared to $3,886.5 million in 2021, an 8.9-percent increase.
“Our team delivered solid operating and financial performance in the fourth quarter and throughout the year, ending in a strong position,” said Scott Medhurst, president and CEO of Toromont Industries. “We continue to monitor supply and other uncertain market and economic variables. The Equipment Group continued to execute well, delivering strong rental and product support results, while optimizing equipment and parts sales. Supply chain challenges persisted, albeit some product lines have shown recent improvement. CIMCO revenue improved in the quarter on project construction and higher product support activity. Across the organization we remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions.”
The Equipment Group, the Caterpillar dealership portion of the company, represents 90 percent of the business. Revenue was $1.1 billion for the quarter. Equipment sales increased 27 percent, improving across most markets, although there was some slippage of unit deliveries within the construction market. Rental, used purchase and product support revenue continued to grow on higher activity, fleet optimization and utilization and increased technician levels.
Revenue for the full year increased 10 percent to $3.9 billion for the full year. Equipment sales, product support and rental activity were higher across most geographic markets and product groups. New equipment and parts supply chains remained a challenge through most of the year, which affected product availability, delaying deliveries slowing work in process and dampening sales growth. Rental revenue, used purchase and product support remained strong throughout the year on higher activity and fleet utilization given the increased capital investment in the heavy equipment purchases and light rental fleet.
Operating income increased $63.3 million or 47 percent in the fourth quarter, reflecting higher revenue and pross margins, the property disposition.
Rental revenue increased 17 percent for the year and exceeded 2019’s pre-pandemic levels.
Toromont Cat is a Caterpillar dealer covering Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador and Nunavut. The company is headquartered in Toronto.
