Toromont Industries Ltd., which operates an equipment segment including one of the world’s larger Caterpillar dealers and Battlefield Equipment, this week reported first-quarter revenues grew 11 percent to $313.1 million from $281.5 million in the same period a year ago. Net earnings in the quarter were $17.8 million, a 5-percent increase from $17.0 million compared to the first quarter of 2012.
"We are pleased with results for the first quarter, traditionally our weakest due to seasonality,” said Scott Medhurst, president and CEO of Toromont Industries Ltd. “Revenues were up 11 percent from a year ago, fueled by increased equipment sales, rentals and product support. Earnings also increased, a testimony to our strong market position and product diversity following a period of heavy contributions from mining equipment sales. Gross margins were dampened by competitive equipment markets driven by a global surplus of new equipment, and additional costs associated with the growth of the product support organization."
Equipment Group revenues for the quarter were $267 million, up 9 percent from 2012 on higher new equipment sales, product support and rentals. Operating income increased 7 percent compared to last year on the higher revenues. Heavy construction and power systems reported strong activity levels.
Equipment Group backlogs were $147 million at March 31, compared to $128 million at Dec. 31, and $260 million at this time last year. Backlogs have declined from this time last year because of significant mining deliveries during 2012 and improved equipment availability. Bookings were $145 million in the first quarter of 2013 compared to $155 million for the same period last year.
The board of directors announced the regular quarterly dividend of 13 cents per share on outstanding common shares, payable July 2, to shareholders of record on June 13. The regular quarterly dividend was previously increased 8 percent to 13 cents per share effective with the dividend paid April 1.
"We are encouraged with the results for the first quarter of the year, our best-ever first quarter,” Medhurst said. “Activity levels and sentiment in the core construction markets, rental segments and improved performance at Power Systems were healthy. In the short term, mining will not repeat the substantial contribution to results achieved last year, however growing product support and rental activity are expected to provide a measure of counter balance. At CIMCO, recreational bookings recovered to more normal levels and the order backlog position bodes well for performance this year."
Toronto-based Toromont also operates CIMCO, a freight shipping and trucking company as well as a refrigeration business. Battlefield Equipment, based in Stoney Brook, Ontario, Canada, is No. 20 on the RER 100.
