Toromont’s Equipment Group Jumps 16 Percent in Second Quarter

Toromont Industries, which owns the Caterpillar dealership for Ontario, Manitoba, Newfoundland and Labrador, posted CDN $415.6 (about U.S. $384.8 million) in second quarter revenues, an 11-percent increase compared to a year ago. The company’s equipment group jumped 16 percent to CDN $369 million for the quarter on strong equipment sales, product support and rentals, which jumped 11 percent in the quarter. Rentals for the first six months of the year increased 9 percent to $91 million.

Toromont is the parent company for Battlefield Equipment Rentals, based in Stoney Creek, Ont., which operates 38 Cat Rental Store locations.

Toromont secured a large equipment order to support the Keeyask hydroelectric project in northern Manitoba. The order includes trucks and auxiliary equipment totaling $55 million, $14 million of which was delivered during the second quarter, with the balance to be delivered later.

“In the Equipment Group, a tight pricing environment exacerbated by a weakened Canadian dollar, is expected to continue gross margins,” said Toromont president and CEO Scott Medhurst. “Continued growth in product support bodes well for future results, as does the expected investment in larger construction projects, as exemplified by Keeyask. We also expect continued growth to come from our investment in the rental business and broader product offerings.”

The remainder of Toromont’s revenue comes from CIMCO, a refrigeration systems business segment.

Battlefield Equipment Rentals is No. 21 on the RER 100.