Toromont Industries Ltd. this week reported financial results for the three-month period ended March 31, starting the year on a strong note with continued positive momentum from what was reported in the fourth quarter of 2010. First-quarter revenues were CA$588.0 million, a 38-percent increase from CA$425.3 million in the first-quarter of 2010.
Net earnings in the first quarter were CA$21.6 million, 40-percent higher than CA$15.5 million in the year-ago quarter. Net earnings in 2010 included (all on an after-tax basis) a gain on units of Enerflex Systems Income Fund held at time of acquisition of $16.3 million, partially offset by $4.3 million in acquisition and integration expenses.
"Thirty-eight percent revenue growth produced a 306-percent increase in operating income, reflecting higher plant loading, better margins and good expense control,” said Robert Ogilvie, Toromont chairman and CEO. “Product support was especially strong in what is normally a weak quarter, indicating that equipment is being put back to work in all of our markets. The integration of Enerflex, our gas compression group, is complete as to structure and people. Expected synergies are being realized."
Equipment Group, which includes Battlefield Equipment Rentals, reported 1Q11 revenues of CA$221 million were up 25 percent in the first quarter versus the same period of 2010 on strong new machine sales and higher rental activities. Product support revenues reached an all-time record of $82 million. Operating income increased 51 percent compared to last year on higher revenues and lower relative expenses.
Equipment Group bookings totaling $136 million in the first quarter were even with the first quarter of 2010. Backlogs of $287 million were up 72 percent compared to this time last year. Mining, power systems and road building have reported strong activity levels.
Headquartered in Toronto, Toromont Industries Ltd. operates through two business segments: The Equipment Group and the Compression Group. The Equipment Group includes Battlefield Equipment Rentals, one of the larger Caterpillar dealerships by revenue and geographic territory in addition to industry leading rental operations. Battlefield is No. 20 on the new RER 100.