Toromont Industries, parent company to Toromont Caterpillar and Battlefield Equipment posted CDN $410.3 million in revenue in the third quarter, a 7-percent decrease compared to the third quarter of 2015, based primarily on lower new equipment sales, partially offset by higher used equipment revenues and product support. Operating income increased by $1.5 million (3 percent) in the third quarter compared to a year ago.
Revenues for the first nine months of the year increased 1 percent to $1.2 billion with product support growth offsetting lower equipment sales and rentals. Equipment sales declined by 4 percent with substantial decreases in construction and mining. Product support jumped 11 percent on strong parts sales into the construction and mining markets. Operating income increased 5 percent year to date.
“Toromont’s results for the third quarter reflect a steady operational focus, which contributed to growth in year-to-date revenues and earnings despite challenging markets,” said Scott Medhurst, president and CEO of Toromont “Equipment Group market conditions remain soft with competitive pricing including rental rates, dampening profitability. Product support continues to provide strong support for the overall business.”
Medhurst said Toromont is encouraged by the long-term outlook for infrastructure spending, although increased investment in the near term does not seem likely.
“Our equipment group customers have been restrained with their capital spending pending project clarity contributing to the softness in many of the markets we serve,” he said.
Toromont’s Equipment Group includes its Cat Rental Store operations, Battlefield Equipment, based in Stoney Creek, Ontario, Canada, and No. 22 on the RER 100.
