Canadian Cat Dealer Toromont Posts Second Quarter Revenue Hike

Canadian Caterpillar dealer Toromont posted CDN $510.7 million (about U.S. $387 million) in second quarter revenue, compared to $484.5 million in the second quarter of 2015, a 5.4-percent increase. For the first six months of 2016, Toromont posted $888.4 million compared to $824.7 million in the same period of 2015, a 7.7-percent hike.

For Toromont’s Equipment Group, the increase was about 3 percent to $441.7 million for the second quarter because of higher product support and used equipment revenues, partially offset by lower new equipment sales. Rental markets for Toromont and Battlefield Equipment, its Cat Rental Store operation, improved after a weak first quarter.

Revenues for the Equipment Group increased 6 percent to $769.3 million for the first six months of the year. Equipment sales increased $13.5 million or 3 percent because of strong used equipment sales offsetting lower new equipment sales and rentals.

“We are encouraged by the long-term outlook for infrastructure spending,” said Toromont CEO Scott Medhurst. “At the same time, we note that our Equipment Group has experienced restrained capital spending by customers, which has contributed to current softness in many markets that we serve. Excess inventories industry-wide, base-metals pricing weakness and a sluggish economic backdrop pose challenges to our operating environment.”

Toromont owns the Caterpillar dealership in Ontario, Manitoba, Nunavut, Newfoundland and most of Labrador. Battlefield Equipment is No. 22 on the RER 100.