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.
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.