Toromont Industries Ltd. last week reported financial results for the three- and 12-month periods ended Dec. 31, 2010. Fourth-quarter revenues were $709.7 million, 57-percent higher than the company’s 4Q09 revenues of $452.8 million. Net quarterly earnings were $35.4 million, up 13 percent from $31.4 million in the year-ago quarter, exceeding the prior year for the first time since the first quarter of 2009. In addition, fourth-quarter bookings were up 94 percent and backlogs increased year over year by 135 percent to $970 million.
The Equipment Group, which includes Battlefield Equipment Rentals, recovered to pre-recession income levels with a 25-percent increase in revenues, including record product support revenues, and a 77-percent increase in operating income for the quarter over the prior year. Bookings for the quarter increased 58 percent and closing backlogs were 133-percent higher reflecting significant orders for longer delivery mining equipment.
Compression Group bookings in the fourth quarter were up 119 percent with large orders coming from Australia and Canada. Revenues were up 93 percent in the quarter reflecting some market recovery and the consolidation of Enerflex Systems Income Fund, which was acquired in the first quarter. Operating income in the fourth quarter of 2010 of $25.4 million approached last year's fourth-quarter results of $26.3 million.
"2010 was a transitional year for Toromont," said Robert Ogilvie, chairman and CEO of Toromont Industries Ltd. "Having acquired ESIF for $700 million in the first quarter, we undertook the challenging task of combining two competitors with different cultures and targeting significant reductions in staff and facilities. Completed in the trough of the global market for compression and process equipment, the additional costs and early distractions associated with acquisition reduced earnings for the year. The integration process is now essentially complete. We have achieved significant synergies and asset reductions. The management team is now able to focus on business profitability and growth."
The board of directors declared the regular quarterly dividend of $0.16 per common share, paid on Jan. 4, to shareholders of record on Dec. 13.
Headquartered in Toronto, Toromont Industries Ltd. operates through two business segments: The Equipment Group and the Compression Group. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory in addition to Battlefield Equipment Rentals, No. 21 on the RER 100.