Toromont, parent company of the Caterpillar dealership for Ontario, Quebec, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and Nunavut, posted CDN $700 million in revenue in the first quarter of 2019 compared to $676.8 in the first quarter of 2018, a 3.4-percent increase. The Equipment Group posted $633.9 million for the quarter, a 3-percent jump, on strong product support and rental growth.
Total new and used equipment sales into mining markets were down slightly. Total industry activity softened compared to last year’s strong start.
Net earnings for the company increased $8.5 million or 28 percent in the quarter compared to a year ago to $39.3 million.
“The company delivered good results in the first quarter through operational improvements in the Equipment Group as we continued to align disciplines and achieve efficiencies,” said Scott Medhurst, president and CEO of Toromont Industries. “The growing proportion of product support and rental revenues contributed positively to growth. Despite a relatively slower start to the year in certain segments, infrastructure projects and broader construction activity in the territory continue to present opportunities for the Equipment Group. Opportunities also exist for equipment supply into the mining sector over the longer term. The diversity of our geographical landscape and markets served, extensive product and service offerings and financial strength together with a disciplined operating culture, position us well for the near and short term.”
Toromont’s refrigeration division, which makes up about 10 percent of the company, also increased about 4 percent in the first quarter.
Toromont is also parent to Battlefield Equipment Rentals, No. 14 on the RER 100.