Toromont Industries Ltd. this week reported strong financial results for the second quarter ending June 30. Net earnings from continuing operations were $25.7 million, up 8 percent from $23.7 million in the same period a year ago, reflecting record second-quarter revenues.
Revenues for the Equipment Group, which includes Battlefield Equipment Rentals, one of the larger Caterpillar dealerships by revenue and geographic territory, also set a new second-quarter record of $334 million, up 16 percent from 2011 on higher new and used equipment sales and product support. Operating income was also a record at $33.8 million, up 15 percent in the quarter compared to 2011 on the higher revenues.
"We are pleased with our results for the second quarter and first half of 2012,” said Scott Medhurst, president and CEO of Toromont Industries Ltd. “Revenues increased 10 percent versus a year ago driven by strong deliveries to the mining sector and record levels for product support. Bookings in the quarter were strong, up 33 percent from a year ago, with healthy increases in mining, power systems and refrigeration."
For the first half of 2012, Equipment Group revenues were a record $580 million, up 14 percent from 2011 on higher new and used equipment sales and product support. Operating income was also a record at $56.7 million, up 18 percent year-over-year on the higher revenues and improved gross margins.
CIMCO revenues were $45 million in the quarter and $81 million for the first half of 2012, down 18 percent and 16 percent respectively from the comparable periods last year.
Subsequent to the end of the quarter, Toromont entered into an agreement with Caterpillar to secure assets associated with the former Bucyrus distribution network. Under this agreement, Toromont will pay $18 million inclusive of working capital of $4.5 million. The addition of the Bucyrus products will strengthen the company’s mining offering for surface and underground.
"We have leading market positions, healthy backlogs and momentum in product support," Medhurst said. "These factors, together with expanded product offerings, position the company well for long-term growth."
Toromont announced the regular quarterly dividend of 12 cents per share on outstanding common shares, payable Oct. 1, to shareholders of record on Sept. 13.
Toromont Industries Ltd. operates through two business segments: The Equipment Group and CIMCO, a market leader in the design, engineering, fabrication and installation of industrial and recreational refrigeration systems.
Stoney Creek, Ontario-based Battlefield Equipment Rentals is No. 22 on the RER 100.