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.”
