Ontario Cat Dealer Toromont Industries Jumps 11 Percent in First Quarter

Toromont Industries, parent company for one of North America’s largest Caterpillar dealerships posted CDN $377.7 million in revenue in the first quarter compared to $340.2 million in the first quarter of 2015, an 11-percent increase.
April 27, 2016
2 min read

Toromont Industries, parent company for one of North America’s largest Caterpillar dealerships posted CDN $377.7 million in revenue in the first quarter compared to $340.2 million in the first quarter of 2015, an 11-percent increase. The Equipment Group jumped 10 percent to $327.6 million in the quarter, with operating income increasing 11 percent to $31.9 million with higher revenues and lower expenses.

Toromont’s Caterpillar operations cover dealership activities in Ontario, Manitoba, Newfoundland, Nunavut, and most of Labrador. It also operates Battlefield Equipment Rentals, one of the rental industry’s largest Cat Rental Store operations.

“We were pleased to achieve growth in the quarter on higher revenues and good expense control in both the Equipment Group and CIMCO,” said Scott Medhurst, president and CEO. “In the Equipment Group, strong used equipment sales, product support growth and increased RPO conversions led to higher revenues.

“In the quarter, the Equipment Group delivered strong results despite weakness in many of the markets that we serve. Excess inventory levels industry-wide and soft commodity prices continue, which impact the operating environment. Product support growth continues to benefit from the larger installed base in the field and serves to partially offset the downward pressures from other areas of the business. We are encouraged that the Federal government has committed to increasing infrastructure spending in our territories, however, timing of any such projects is unclear at this time.”

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.

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