Toronto-based Toromont Industries Ltd. last week reported revenues in the second quarter increased 15 percent and operating income increased 23 percent versus the comparable period of 2007. Compression Group revenues and operating income were at record levels for this time of year, driven by continued strength in U.S. natural gas operations. The Equipment Group reported good results in the second quarter after a weaker start to the year and is only modestly behind record revenue and operating income levels set last year, the company said.
Earnings in the second quarter and for the first half of 2007 and 2008 included investment gains and earnings from discontinued operations. Excluding these items in both years, net earnings for the second quarter of 2008 were $33.3 million or $0.51 basic earnings per share, up 32 percent from $25.2 million or $0.39 per share in the similar period of 2007. For the first half, excluding these items, net earnings were $47.8 million or $0.73 basic earnings per share, up 21 percent from $39.4 million or $0.61 per share in the comparable period of 2007.
Net earnings were $37.8 million or $0.58 per share, down marginally from the second quarter of 2007 on strong growth in results from operations, largely offset by lower relative gains on investments. Revenues, operating income and net earnings were all higher in the first six months of 2008 compared to the similar periods of 2007. For the first half of the year, net earnings were $54.3 million or $0.83 basic earnings per share, up from $52.3 million or $0.81 per share reported in 2007.
“We are pleased with the results for the second quarter and through the first half of the year,” said Robert Ogilvie, chairman and CEO of Toromont Industries Ltd. “The Compression Group had a terrific quarter with excellent growth in U.S. operations supported by strong market fundamentals. The U.S. natural gas compression market continues to experience strong growth and we are well positioned to participate in this area. The Equipment Group continues to perform well despite the stronger Canadian dollar and softer market conditions in some areas. Strong deliveries of new equipment to the mining and infrastructure markets continue to generally outweigh pockets of weakness.”
Rental volume for the second quarter dropped from CD $34.5 million (about U.S. $34.0 million) in 2007 to $33.6 million for this year’s second quarter. First-half rental volume increased 1 percent in 2008 compared to 2007, $61 million in 2008 compared with $60.5 million in 2007’s first half.