Revenues for Toromont Equipment Group Jump 8 Percent in 2015
Toromont Industries, which includes one of the world’s largest Caterpillar dealerships, posted CDN $1.8 billion (about U.S. $1.29 billion) in revenue in 2015, compared to $1.66 billion in 2014, a 9-percent increase. The company’s revenues increased 1.35 percent to $472 billion. The Equipment Group revenues jumped 8 percent in 2015 to $1.6 billion. Product support growth was good, and equipment sales and rentals also increased with good activity in construction markets. Fourth quarter Equipment Group revenues were relatively flat year over year.
Total equipment rental revenue for the Equipment Group increased about 1 percent to $222.6 million for the full year. Rental revenues were strong in heavy equipment and power rentals, with heavy equipment rental increasing 7 percent on a larger fleet. Power rentals jumped 13 percent, benefitting from solid activity during the Toronto Pan-Am games and increased penetration in the entertainment market. Light equipment rentals were relatively unchanged year over year as a drop in activity related to renewable energy projects was offset by increases in other segments. The company continues to invest in the competitive light equipment rental market by opening new rental branches in Goose Bay, Newfoundland, and Brantford and North Bay, Ontario.
Total equipment sales and revenues jumped about 4 percent to $1.01 billion. While power generation declined about 3 percent, product support revenue jumped 18 percent to $547.9 million.
Fourth quarter rental revenue declined 3 percent to $61.4 million, while total Equipment Group revenues were flat.
The Equipment Group of Toromont includes Toromont Cat, one of the largest Caterpillar dealerships by revenue and geographic territory, plus Battlefield Equipment Rentals, No. 19 on the RER 100. Toromont covers Ontario, Manitoba, Newfoundland and most of Labrador and Nunavut.
