Toromont’s Rental Jumps 13 Percent for First Nine Months of 2014
Toromont Industries, which includes one of Canada’s largest Caterpillar dealerships, dropped 6 percent in revenues, with the company’s Equipment Group revenues decreasing 4 percent to $411.1 million in the third quarter, primarily on lower new and used equipment sales. However, rentals and product support revenues were both at record levels.
Equipment Group revenues for the first nine months of 2014 increased 3 percent to $1 billion mainly on increased used equipment sales, product support and rentals, which jumped 13 percent to $157.1 million. Product support revenues increased 10 percent to $338.6 million.
On Sept 30, Toromont acquired Ag West Equipment Limited for $6 million inclusive of acquired debt. Based in Manitoba, Ag West specializes in the sale and servie of agricultural equipment.
“In the Equipment Group, heightened competitive conditions across all industries we serve, together with the weaker Canadian dollar, have suppressed gross profit margins,” said Toromont CEO Scott Medhurst. “Product support growth is expected to continue with the substantially increased base of equipment within our territory. Rental revenue growth is expected to continue in light of good demand, supported by our investment in the rental fleet.”
Toromont also operates CIMCO, a refrigeration division.
Toromont is the Caterpillar dealer for Ontario, Manitoba, Nunavut, Newfoundland and most of Labrador. Its Cat Rental division, Battlefield Equipment Co., is No. 21 on the RER 100.
