Cat Dealer Toromont Revenue Jumps 14.6 Percent in Third Quarter
Toromont Industries posted CDN $584.2 million in third quarter revenue, compared to $509.8 million in the third quarter of 2016, a 14.6-percent increase. For the nine-month period ended Sept. 30, the company reported $1,527.4 million in revenue compared $1,419.8 million for the first nine months of 2016, a 7.6-percent hike.
Toromont owns Eastern Canada’s largest Caterpillar dealer, which makes up the majority of its revenue, also owning CIMCO, a refrigeration group. The equipment portion of the company just got significantly bigger with the acquisition – which closed on Oct. 27, after the quarter’s end – of the Hewitt Group, Caterpillar dealer for Quebec, Western Labrador and the Maritime provinces. Hewitt is also the Caterpillar lift truck dealer for Quebec and most of Ontario, and MaK engine dealer for Quebec, the Maritimes, and the eastern seaboard of the United States from Maine to Virginia.
The Equipment Group posted $488 million in the quarter, a 16-percent year-over-year jump. Equipment sales benefited from strong mining deliveries, which leapt 87 percent. Good growth was reported in rentals and product support.
“Results for the three and nine months ended September 30, 2017, were very strong for both the Equipment Group and CIMCO,” said Scott Medhurst, president and CEO of Toromont Industries Ltd. “This reflected the diversity of our business and solid execution from our decentralized operational and corporate teams, empowered to execute and deliver results even while part of the team was heavily focused on a major transaction. We are pleased and enthused that our efforts to expand Toromont’s geographic profile and create opportunities for future growth have been realized with the Hewitt acquisition and we look forward to developing on the strength of the combined organization.
“The Hewitt acquisition marks a very important milestone for Toromont, and we expect it to be beneficial to our customers, employees, suppliers, and shareholders on many levels. We appreciate the confidence of our partner, Caterpillar, in endorsing this opportunity and we welcome the Hewitt team to the Toromont family. Integration efforts are already under way. The long-term outlook for infrastructure spending remains positive from both the provincial and federal governments. We continue to see increased activity in the mining and power systems sectors.”
Battlefield Equipment Rentals, owned by Toromont, is based in Stoney Brook, Ontario, and is No. 18 on the RER 100.
