Toromont Posts Revenue Increase, Strong Rental Growth in 2013

Toromont, owner of one of the world’s largest Caterpillar dealerships, posted a 6 percent hike in total revenues for 2013, with CDN $1.59 billion (about U.S. $1.49 billion), a 6 percent increase compared with $1.507 billion in 2012. For the fourth quarter, however, revenues declined 6 percent from $431.1 million in 2012 to $407.3 million in 2013.

The equipment group posted revenues of $1.4 billion, a 4-percent year-over-year jump. The company posted record levels in new and used equipment sales, product support and equipment rental.

The rental division posted $193.4 million in revenues, a 5-percent increase compared with 2012. Rental revenues were higher based on improved utilization and expanded fleet as the company invested $47 million in fleet in 2013. Utilization was strong on light equipment, driving revenues to a 10-percent increase, with heavy equipment revenues leaping 20 percent. Operating efficiencies with the heavy rental fleet remains a focus, the company said, as high repair costs, freight expense, and rental processes diluted the profitability of the larger fleet. Equipment on rent with a purchase option decreased 20 percent, reflecting general economic uncertainty whith led some customers to prefer a rent-to-rent solution. Rental rates remained somewhat constant year over year because of a competitive rental environment.

Toromont owns Battlefield Equipment Rentals, No. 21 on the RER 100.