Toromont Industries Ltd., which operates an equipment segment including one of the world’s larger Caterpillar dealers and Battlefield Equipment, one of Canada’s largest rental outfits, last week reported financial results for the three- and 12-month periods ended Dec. 31, 2011. In the fourth quarter, Toromont reported strong results with net earnings from continuing operations increasing 22 percent to CDN $34.2 million from CDN $28.0 million in Q410, reflecting higher revenues and better margins. For the year, net earnings increased 34 percent to CDN $102.7 million from CDN $76.7 million in 2010.
"Revenues from equipment sales, product support and rentals were at or near record levels for a fourth quarter and full year," said Robert Ogilvie, chairman and CEO of Toromont Industries Ltd.
Equipment Group revenues of $371 million were up 25 percent in the fourth quarter versus the similar period of 2010 on higher new and used equipment sales and product support activities. Revenues were $1.2 billion for 2011, up 17 percent from a year ago. Operating income increased 17 percent in the fourth quarter and 24 percent in the full year compared to 2010 on higher revenues.
Backlogs in the Equipment Group were $224 million at the end of 2011 compared to $256 million at this time last year. Significant mining deliveries began in the fourth quarter, drawing down the order backlog. Power systems and road building have reported strong activity levels.
"Toromont is well positioned to achieve continuing success, with a healthy backlog, leading market positions and growing product support activities," Ogilvie said. "We have significant organic expansion opportunities and continue to search for strategic acquisitions. Our team is focused on improving market share by providing exceptional service to our customers."
Toromont Industries and its board of directors approved a 9-percent increase in Toromont's regular quarterly cash dividend, marking twenty-three consecutive years of increasing dividends. It declared a quarterly dividend at the new rate of CDN 12 cents per share, payable April 2, to shareholders of record at the close of business on March 9.
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.
