Toronto, Ontario-based Toromont Industries last week reported record second quarter revenues and net earnings for the three months ended June 30, 2006. Net earnings were $24.9 million or 39 cents per share, up 30 percent from $18.8 million or 30 cents per share reported in the second quarter of 2005. For the first six months of 2006, net earnings were $36.6 million or 57 cents per share, up 36 percent from the comparable period in 2005. Both the equipment and the compression groups reported strong operating results, with excellent growth in both revenues and operating income for the quarter. All figures are in Canadian dollars. Based on the current conversion rate, $1 Canadian = $0.87 U.S.
"We are very pleased with the financial results for the first half of the year,” said Hugo Sorensen, president and CEO. “Favorable market conditions across our operations continued to drive demand for both our products and services."
Equipment group revenues were up 9 percent in the quarter over last year on solid new and used equipment sales. Operating income in the equipment group was up 25 percent in the second quarter over the comparable period in 2005 due to improved gross margins, higher rental fleet utilization and lower relative growth in expenses.
Expansion plans are under way at the company’s facilities in Houston and Casper, Wyo. Approximately 40,000 square feet of production capacity will be added at each location, effectively doubling production capacity at each location.
The economic outlook for Canada remains positive, providing favorable market conditions for the Caterpillar dealership and Battlefield, The Cat Rental Store.
Toromont Industries Ltd. operates through two business segments: The Equipment Group and the Compression Group. The Equipment Group includes Stoney Creek, Ontario-based Battlefield Equipment Rentals.
