Toromont Industries last week reported record financial results for 2007, it’s fifth consecutive year of growth, with equipment rental division Battlefield Equipment jumping 16 percent in 2007. Revenues and net earnings were higher compared to the same periods of 2006. Net earnings for the quarter were $39.3 million or $0.61 per share, up 7 percent from $36.9 million or $0.58 per share reported in the fourth quarter of 2006. For the year, net earnings were $122.3 million or $1.89 per share, up 23 percent from 2006. Record mobile equipment sales and rentals together with solid project execution and very strong growth of the U.S. compression business were the primary contributors to the higher earnings. Full-year results for 2007 included a $0.20 per share gain on sale of property recorded in the second quarter.
“We are pleased with our results, particularly in light of the record highs set in 2006,” said Robert Ogilvie, chairman and CEO of Toromont Industries Ltd. “Revenues have increased annually over the past 10 years and net earnings have been higher in nine of the last 10 years. The Equipment Group exceeded expectations in the fourth quarter, setting a new December record for sales of new equipment. The Compression Group also exceeded expectations in the fourth quarter on excellent project execution in all operations and continued business growth in the United States.
“The Equipment Group delivered exceptional results, with solid growth in both revenues and operating income driven by strong demand in the mining, infrastructure and marine industries. Product support activity was particularly strong in the last quarter after a slower start to the year. Rental operations through Battlefield - The CAT Rental Store have shown consistent growth in revenues since inception in 1996, adding another 16 percent in 2007.”
Equipment Group revenues were up 9 percent in the fourth quarter of 2007 versus the same period of 2006 on 17 percent growth in new machine and engine sales, a 14-percent increase in rentals and an 11-percent increase in product support. Operating income in the quarter increased 18 percent over the same period last year on the higher revenues and improved gross margins.
For the year, Equipment Group revenues were up 11 percent over 2006 while operating income was up 18 percent. Revenue growth was driven by a 20-percent increase in new machine and engine sales and rental revenues. Growth in operating income, up 18 percent, reflects higher revenues and improved gross margins.
The board of directors declared the regular quarterly dividend of $0.12 per common share, paid on Jan. 2, to shareholders of record on Dec. 14. The company has paid dividends every year since going public in 1968.
Toronto-based Battlefield Equipment Rentals is No. 22 on the RER 100.